USD/JPY cratered Monday as broader.......>

DOLLAR-YEN: USD/JPY cratered Monday as broader risk appetite crumbled. A sharp

sell-off in oil prices was the main theme of the day, with sentiment further

pressured by escalating Covid-19 epidemic. The rate gapped lower at the open and

took a nosedive later in the Asia-Pac session, in sync with sharp sell-offs in

high-yielding MXN & ZAR (Mrs Watanabe as the driver?) as well as the

Antipodeans. The rate dropped again later in the day, hitting a low of Y101.19,

but managed to return onto the Y102.00 handle.

- The rate's slump drew the attention of Japanese financial off'ls, as the

psychological Y100.00 level grew nearer. A top FX off'l emerged from a meeting

between BoJ, FinMin & FSA representatives noting that he's watching "nervous mkt

moves" with a sense of urgency, echoing earlier comments from FinMin Aso.

- USD/JPY has added 36 pips thus far & sits at Y102.72, as U.S. equity futs have

drawn support from U.S. Tsy Sec Mnuchin's remarks re: the Pres being "committed

to using all tools for the economy." Bulls look to take out the 23.6%

retracement of the YtD range at Y103.80. Bears keep an eye on the Y102.00 mark.

- The focus turns to flash machine tool orders (today) & PPI (Thursday).