LONDON, Dec. 1 (MNI) - Headlines from the extra BOJ policy meeting hit the wires at the European open, prompting dollar-yen to retrace its overnight spike, as measures taken to support the economy were perceived by traders to be insufficient and with no mention of intervention to weaken the yen.

Dollar-yen slipped back below Y87.00 and held a tight range over the balance of the session. Euro-dollar meanwhile recovered off its Asian lows at $1.4970 as European stocks traded with steady gains. Highs were extended above $1.5075 ahead of the US open, where traders reported strong offers capping the rally.

YEN SUMMARY: Opened in early Europe around Y86.80 and Y130.37

described as calm, before an announcement that the BOJ would hold an extra policy meeting at 0500GMT prompted an 80-point spike to Y87.53 as stops were hit on the break of Y87.20. Euro-yen followed a similar path, recovering off early lows at Y129.35 and spiking up to session highs at Y131.28. Yen pairs held on to gains ahead of the BOJ announcement, with the release then seeing a dip back to the Y86.70 area as measures are taken to support the economy were seen to be perhaps less aggressive than required.

the BOJ press conference, though with the detail then providing little in the way of fresh insight, dollar-yen was able to trade in a tight range around Y87.00 over the balance of the European morning. Euro-yen had slipped back towards Y130.00 into early Europe before a steady recovery to Y131.20 as European stocks held a positive tone.

JAPAN: Reported comments from Japanese officials Tuesday, * SHIRAKAWA: Comments from BOJ Governor - New operation effectively QE - New operation backed by effectively zero rates - 0.1% in line with global standard for zero rates - Further cut from 0.1% would impact on market functions - Always discussing buying JGBs outright - JGB buying not for funding fiscal spending - Y2.16 trillion JGB outright buying best possible now - Ensuring fund availability will not be problem - Recent FX, other moves could hurt sentiment - Market conditions could lead to size change in 3-month ops - Deflation means continued mild price drops * HIRANO: Reported comments from Japan Govt spokesman - BOJ responded appropriately to economic situation - BOJ response was in line with govt policies - BOJ acted independently, govt appreciates its decision - Can't say if BOJ steps are too much or too little * FUJII: Comments from Japan FinMin - Agrees with Shirakawa that BOJ decision is QE in broadest sense - Up to BOJ whether to increase JGB buying - Up to markets to determine in BOJ steps will have impact on rising yen, deflation. - Expects BOJ to work expeditiously together with Govt on economy * KAN: Japan Strategy Minister Kan reported saying - Welcomes BOJ's speedy decision at extra meeting - Expect BOJ's new measures to have impact in correcting yen's rise - Highly appreciate BOJ providing lower-rate funds for long period

JAPAN: Releases in Japan Tuesday, * BOJ: 'Emergency Meeting', - BOJ keeps key rate at 0.1% but says to begin new funding operation at fixed rate. BoJ says new funding program size to be around Y10 trln and will cover three months of funding needs, with the aim to encourage a further drop in long-term rates.

EURO SUMMARY: Opened in early Europe around $1.5020

highs at $1.5041 on reported US investment bank demand. Rate eased back before finding initial support at $1.5005/00 linked to euro-yen demand. The sell off in the Aussie following the RBA rate announcement provided the added downside weight to take rate below the figure, with euro-dollar then dropping down to session lows at $1.4970 ahead of the European open.

back above $1.5000 and into reported semi-official supply in the $1.5040 area. Pullback from here proved to be shallow, with the focus back on the upside as the rate moved on to challenge reported strong supply above $1.5075. The move was capped at $1.5082, with euro-dollar holding on to the majority of its gains ahead of the US open.

RBA: RBA raised rates 25 bps to 3.75%, as widely expected.

US:Press pick-ups in the US Tuesday, * US PRESS: The post-Thanksgiving shopping marathon continued Monday with nearly 100 million shoppers expected to troll online retailers for bargains on what has become known as Cyber Monday, helping to make the sector one of retail's few bright spots, the Washington Post reports. * US PRESS: Highway-construction companies around the country, having completed the mostly small projects paid for by the federal economic-stimulus package, are starting to see their business run aground, an ominous sign for the nation's weak employment picture, the Wall Street Journal reports.

EUROZONE: Data released in the eurozone Tuesday, * EMU: Eurozone unemployment remained unchanged at 9.8% in October, while September's figure was revised up from 9.7%, Eurostat reported on Thursday. Expectations had been for a climb from September's pre-revised figure to 9.8% for the month. * GERMANY: Official release confirms Nov sa unemploymwent -7k m/m - Nov sa unemployment distorted by methodology - Labour Agency - Nov sa unemployment ex-distortion estimated +10k - Nov sa unemployment rate 8.1% * GERMANY: German retail sales rebound as expected in October, rising 0.5% on the month following September's 0.2% decline, the Federal Statistical Office reported on Tuesday. The annual change came to -1.7% in seasonally adjusted terms. * GERMANY: German seasonally adjusted employment measured in ILO terms dropped by 29,000 in October to 40.069 million, marking the eighth consecutive monthly decline, the Federal Statistical Office said Tuesday. On a non-seasonally adjusted basis, employment rose by 157,000 on the month to 40.512 million. On the year, the number of employed was down by 260,000 or -0.6%, the data showed. * EUROZONE: Nov manufacturing PMI 51.2 (Flash 51.0) vs Oct 50.7 * GERMANY: Nov manufacturing PMI 52.4 (Flash 52.0) vs Oct 51.0 * FRANCE: Nov manufacturing PMI 54.4 (Flash 54.2) vs Oct 55.6 * SPAIN: Nov manufacturing PMI 45.3; Oct 46.3

Rates in London Trading TIME EURO-USD USD-YEN CABLE EURO-YEN EURO-STG 0600 GMT 1.5001 87.40 1.6422 131.10 0.9134 0700 GMT 1.5020 86.80 1.6418 130.37 0.9148 0800 GMT 1.5027 87.04 1.6445 130.79 0.9137 0900 GMT 1.5067 86.97 1.6518 131.03 0.9121 1000 GMT 1.5060 86.87 1.6530 130.82 0.9110 1100 GMT 1.5076 86.80 1.6565 130.85 0.9102

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