Remains A Laggard Amid USD Weakness, Tokyo CPI On Tap Today

Yen remained the weakest performer against the USD post the Asia close. USD/JPY spiked as high as 132.66 before selling interest emerged. We are back to 131.80 now, although this is only slightly firmer relative to NY closing levels from the end of last week (near 132.10) and versus a 0.60% drop in the BBDXY index for Monday's session.

• Tech levels of note remain somewhat unchanged, with 133.385 marking the 20-day EMA. The key support and trigger for a resumption of the downtrend is 129.52, the Jan 3 low. Initial key short-term resistance has been defined at 134.77.
• Today the focus will be Tokyo CPI prints for Dec, as local markets return from yesterday's holiday. The market looks for headline at 4.0% y/y, versus a revised 3.7% gain in Nov. Core is expected to print at 2.7%, from a revised 2.4% prior.
• Over the weekend Kyodo reported that the BoJ was weighing revising its inflation forecast higher for the current financial year (ending March 31) at the next policy meeting (Jan 17-18).