LONDON (MktNews) - Dollar-yen saw some selling from a large German bank in quiet Asian trade, Friday, while euro-dollar held in a tight range around $0.89.

YEN: Edged lower amid German sales to test Japanese bids from Y121
-- Large German bank seen as the main seller
-- Buying interest seen from Japanese banks
-- Trade is generally quiet with Japanese traders still on "Golden Week" holidays.
-- Bids seen at Y121.00 to Y120.70
-- Stops noted at Y120.70.
-- Traders also relate weak talk of Kampo bids at Y120.65.
-- Option barrier noted at Y120.50 with related bids ahead of there and stops in place on a break of that level.
-- Offers noted at Y121.40/50.
-- Stops also seen at Y121.60
-- Further offers noted at Y121.60/80.
-- Euro-yen traders note US fund bids from Y107.70 to Y107.50.
-- Traders now focused on a key speech by PM Junichiro Koizumi on Monday

EURO: Held in a range 10 pips either side of $0.89 in Asian trade
-- European banks seen on the offer
-- Japanese bank demand for euro-yen supporting euro-dollar
-- Offers initially seen at $0.8915/20
-- Further offers noted at $0.8940 as well as at $0.8980/90
-- Some large stops said to await at $0.90
-- Bids noted at $0.8880
-- However, traders warn of a band of stops at $0.8880/70.
-- Further buying interest seen in place at $0.8860/50

LOOKING AHEAD: Traders are focused on the U.S. employment data, due at 1230GMT.
-- Nonfarm payrolls are expected to rise 25,000 in April as retail and government payrolls recover from their surprising declines in March, but the manufacturing sector is still expected to be weak (-30k).
-- Despite the March weakness, nonfarm payrolls averaged a 114,000 monthly gain in the first quarter.
-- The unemployment rate is expected to rise to 4.4% in April. Hourly earnings are expected to post an below-trend 0.3% gain, while the workweek is forecast to be trimmed to 34.2