JPY began the session as the notable.....>

DOLLAR-YEN: JPY began the session as the notable outperformer in the G10 space,

as U.S. equity index futures traded lower, but the yen has surrendered a chunk

of its gains, with the Nikkei adding ~3.9% & U.S. index futures briefly turning

positive. Rate last deals 25 pips or so lower at Y111.14, around the middle of

its daily range.

- Sources highlighted JPY demand around the 10:00 Tokyo fix, as well as selling

of JPY vol from Japanese names.

- Rate printed a low of Y110.85 in Asia-Pacific hours, after breaking below the

200-DMA at Y111.04, although the Dec 20 low at Y110.81 held; a break there would

allow bears to target the Dec 26 low of Y110.14. Bulls look for a close above

the December 21 high at Y111.46, which would then open up the NY hourly highs

from December 20 at Y111.73/83.

- Broader risk backdrop set to be key for JPY over the next 24 hours. Also worth

highlighting the following USD/JPY option expiry at today's 10:00 NY cut:

Y111.50 ($2.3bn).