USD/JPY is testing Y112.00 at writing,...>

DOLLAR-YEN: USD/JPY is testing Y112.00 at writing, registering a low of Y111.94

thus far, as the JPY benefits from the risk off flows surrounding U.S.-Saudi

tensions, Brexit matters and the Italian budget situation.

- Nearby support is located at the 50-DMA (Y111.85), followed by the 55-DMA

(Y111.82). Bulls need to reclaim the October 11 high (Y112.53).

- It is worth noting that BOJ Governor Kuroda took to the wires over the weekend

and noted that the Bank's YCC is its main policy tool, and that a signal re: a

MonPol shift would be a change in the BOJ's target rate (when the 2% inflation

target is met/close to being met).

- Japanese national CPI, due Friday, headlines the domestic economic docket this

week, with focus also set to fall on the BOJ's Rinban operations, in addition to

comments from BOJ Gov. Kuroda & Dep. Gov. Amamiya.