USD/JPY has dropped 7 pips and last......>

DOLLAR-YEN: USD/JPY has dropped 7 pips and last sits at Y109.54. This comes

after the pair closed 23 pips higher Weds, as the yen underperformed, the JPY

found itself on the backfoot in early trade after the BoJ trimmed its CPI

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

upgraded its FY19 & 20 GDP exp. In the subsequent press conference BoJ Gov

Kuroda said that downside risks to overseas econ are strengthening & the BOJ

must carefully watch for any impact on domestic firms' & households' sentiment.

Kuroda told reporters that the BOJ will conduct additional easing if needed. 

- JPY regained some poise in NY hours as equities struggled for a chunk of the

session (ultimately closing higher) & USD/JPY topped out at Y110.00. Bears need

a fall through Y109.33, where the rate bottomed yesterday, before shifting focus

to the 21-DMA at Y109.12. Meanwhile, bulls look to yesterday's YTD high of

Y110.00 before challenging the upper 1.0% 10-DMA envelope at Y110.26. 

- Japanese focus this week falls on the Nikkei m'fing PMI due later today &

Tokyo CPI due tomorrow, while Friday's BoJ Rinban ops will also be of interest.

Elsewhere, BoJ Gov Kuroda will speak in Davos in the European morning Thursday.