USD/JPY advanced 26 pips in the..........>

DOLLAR-YEN: USD/JPY advanced 26 pips in the Asia-Pac session and last sits at

Y109.63, with the yen underperforming amongst the G10 space. JPY already

struggled in early Asia-Pac hours, as risk assets recovered, before it came

under additional pressure from the BoJ's decision to trim its CPI outlook for

FY19 to 0.9% from 1.4% & cut its FY18 growth outlook (although it upgraded its

FY19 & 20 GDP exp.). As a reminder, the BoJ decided to leave its MonPol settings

unchanged. 

- Having briefly looked above yesterday's high of Y109.70, bulls need to breach

that level before attempting a run at Y110.00, which represents the Dec 25 low

(now resistance), and which has remained intact this year. Conversely, bears

look to yesterday's low of Y109.15, followed by the Jan18 low of Y109.06. 

- Japanese highlights this week include the Nikkei m'fing PMI due tomorrow &

Tokyo CPI due Friday, while usual BoJ Rinban ops will also attract interest.