YEN SUMMARY: European opening level Y125.45/Y106.82
-- Asian range Y125.35/125.66
-- Dollar buoyed overnight by the easing of the Argentine situation but Japanese exporter offers placed toward Y125.70 capped.
-- Japanese exporter offers in the Y125.50/60 area contain topside in Europe.
-- Stronger offers reported to be positioned above Y125.80 to Y126.20.
-- Bids reported to be positioned in the Y125.10/00 area with reports of 'hot money' stops postioned on the break below.
-- Technically a clear break below Y125.10 seen opening a corrective move down to Y124.85/124.35.
-- Euro-yen tracking dollar-yen moves with trade contained within a range of Y106.50/107.25.
-- Bids seen positioned at Y106.50 with stops below, further bid interest then seen on the approach to Y106.00.
-- Offers placed at Y107.50/60, stronger on the approach to Y108.00.

JAPAN: Reported comments from Japanese officials Tuesday
-- SHIOKAWA: To take all measures to avoid economic contraction. - Wants to tell BOJ monetary policy important to prevent price falls.
- FX policy unlikely to be a major topic at the upcoming G8
-- HAYAMI: Markets should decide currency levels.
- to monitor stock market movements with great interest.
- to take appropriate policy while monitoring reforms, global economy
- no need now to consider expanding current account deposit target
- not appropriate to adopt inflation targeting policy
- effect of March easing starting to spread in markets
- easing factored in expectations of some worsening in economy
- Japanese economy likely to remain in adjustment phase for a while
- does not think banks will become undercapitalised in immediate term.
- Needs to watch banks bad loan write-offs, stock prices and earnings.
-- TAKENAKA: Japan can raise potential growth rate to 2.5 - 3.0%
-- to avoid continued contraction, seek 0-1% growth in the next 2/3 years
-- Monetary policy can play bigger role for the Japanese economy
-- BOJ ready to take decisive monetary action.
-- Government will take quick, bold action if economic crisis arises.

-- US ENVOY BAKER: Japan does not need to export way out of trouble
- Japan banking system has serious problems but not insurmountable
- Does not anticipate precipitous Japanese inflation.

JAPAN: Data released in Japan Tuesday.
-- May diffusion index was revised up to 77.8 from preliminary reading
of 71.4 on a scale of a hundred.
- Coincident index for May was marked up to 30.0 from preliminary 25.0