The key Y112.00 level gave way early.....>

DOLLAR-YEN: The key Y112.00 level gave way early Thursday amid rising risk-off

sentiment, before the rate moved higher alongside a recovery in risk sentiment,

with a show above down trendline resistance (Y112.58). JPY had limited reaction

to the fall in U.S. equity index futures after the cash close (post Amazon &

Alphabet earnings), waiting for broader risk off flows in Asia, centring on a

softer CNY, to turn bid, although there was a brief pop higher for the USD/JPY

as a strong bid in the Nikkei 225 provided some short-term respite.

- That was before BBG BoJ source reports suggested that some at the BoJ are said

to see the 10-Year yield limit somewhere higher than +0.2%, with BoJ officials

said to not want sharp 10-Year yield volatility according to the sources, which

when coupled with the Nikkei 225 moving back into the red, weighed on JPY

crosses.

- USD/JPY registered a low of Y112.07, last Y112.20, bears now target a close <

trendline support (112.07) to open up the 100-DMA (Y111.54).

- Focus next week turns to the BOJ's latest MonPol decision, with industrial

production and labour market data also due, in addition to BoJ Rinban ops.