USD/JPY has dropped a dozen pips and.....>

DOLLAR-YEN: USD/JPY has dropped a dozen pips and last deals at Y112.40. Risk

appetite struggled for clear direction overnight, as the Nikkei 225 gyrated to

close 0.6% lower, while U.S. equity index futures have remained in the green. 

- Bears eye the Y112.19 level, which represents the 23.6% fibo retracement of

the move from Y104.56 to Y114.55 (2018 range). A break below would allow them to

target the option-related support at Y112.00. On the topside, the Dec 18 high at

Y112.86 provides initial resistance and is followed by the cloud top at Y113.09.

- BoJ MonPol decision due Thursday is in the spotlight this week. Otherwise,

Japanese focus turns to the inflation report due Friday, as well as BoJ Rinban

ops.