USD/JPY added 12 pips overnight and......>

DOLLAR-YEN: USD/JPY added 12 pips overnight and last deals at Y109.37. Despite

early strength, the yen fell to the bottom of the G10 currency leaderboard as

the Nikkei 225 added 1.2%, while U.S. equity futures moved into positive

territory. 

- Early Asia-Pac hours saw the release of Japanese CPI with both headline & core

prints slowing down in December, drifting further away from the BoJ's 2% target,

which may have added pressure on the yen. MNI sources said the disappointing

print fuelled concerns among the BoJ members (see MNI Main Wire at 02:45 GMT

01/18). 

- After looking above yesterday's high at Y109.40, bulls look for consolidation

above, which would open up the 1.0% envelope 10-DMA at Y109.68. On the downside,

initial focus falls on the psychological Y109.00 level, ahead of yesterday's low

of Y108.69. 

- The BoJ is set to deliver its MonPol decision Wednesday.