Selling Pressure Hits Yen In Early Tokyo Trade

USD/JPY has crept higher as the Nikkei 225 has erased its initial losses, with the yen underperforming all of its G10 peers as we type. The pair last operates at Y115.42, up 16 pips on the day.

• Bulls keep an eye on last Friday's high of Y115.68 and a break here would turn focus to Jan 10 high of Y115.85. On the flip side, a fall through Jan 27 low of Y114.48 would bring Jan 14/24 lows of Y113.49/47 into view.
• Late on Friday BoJ Gov Kuroda stressed that there was no plan within the Bank re: changing the JGB tenor targeted by its YCC mechanism until the Bank's 2% inflation target is in sight and discussions re: exit strategies take hold.
• Japan's factory output shrank 1.0% M/M in December, which came on the heels of a record monthly gain recorded in the previous month, preliminary data showed. Retail sales also shrank 1.0% M/M in the first decline since August, despite consensus forecast looking for a 0.3% uptick.
• Participants look ahead to the release of Japan's consumer confidence (today) & unemployment (Tuesday).