Risk off flows pressured USD/JPY.........>

DOLLAR-YEN: Risk off flows pressured USD/JPY overnight and the rate trades 13

pips lower on the day, at Y113.50 last, off of lows of Y113.43, with the yen

sitting atop the G10 pile. The Nikkei 225 closed ~2% lower, while U.S. equity

index futures are also in the negative territory. 

- Worth highlighting the breakdown of the latest Nikkei manufacturing PMI out of

Japan, which noted that the "survey does bring some cautious undertones to the

fore", attracted some attention in the context of broader risk environment. 

- Initial downside focus falls on the Dec 13/12 lows of Y113.21/14 and a fall

through those levels would open up Y113.02, which represents the 50-DMA & 38.2%

fibo retracement of the move from Y112.24 to Y113.52. On the topside, bulls eye

the Dec 13 high of Y113.71 ahead of targeting the Dec 3 high at Y113.85. 

- Participants will be attentive to the BoJ MonPol decision due next Thursday.

Elsewhere, next week's Japanese data releases include domestic trade balance due

Wednesday, as well as CPI, machine tool orders & all industry activity index due

Friday.