USD/JPY deals at Y113.01 at writing, a...>

DOLLAR-YEN: USD/JPY deals at Y113.01 at writing, a touch lower on the day. 

- The rate posted a 20 pip spike higher in early Asia-Pac dealing, before

softening as risk appetite moderated in the Tokyo morning. The rate has stuck

around Y113.00 since, even with the Nikkei 225 registering fresh highs in the

afternoon session. 

- Markets shrugged off the release of Japanese CPI, as the reading fell in line

with expectations. 

- The Nikkei reported that Japan will spend >Y2.0tn to mitigate the effects of

the planned sales tax hike, due in 2019. Elsewhere, NHK suggested that the

government is eying a 5 ppt rebate 9 months after the scheduled sales tax goes

into play. 

- Bulls continue to look for a clean break above the 21-DMA/yesterday's high at

Y113.14/15 before shifting their focus to the 50%/61.8% fibo retracement of the

move from Y114.21 to Y112.31 at Y113.26/48. Meanwhile, bears need to move

through the 50-DMA at Y112.93 before challenging Weds intraday lows of Y112.65. 

- As a reminder, Japan will observe national holiday on Friday.