USD/JPY last deals at Y111.38, 35 pips...>

DOLLAR-YEN: USD/JPY last deals at Y111.38, 35 pips worse off, as risk appetite

waned overnight, with the Nikkei 225 sliding into negative territory failing to

extend on Friday gains. Furthermore, a BBG source said that "some funds

liquidated long positions in USD/JPY" in response to the Nikkei 225's retreat,

adding that there are more stop-loss orders below the Apr 4 low of Y111.34.

- BoJ Gov Kuroda spoke overnight, maintaining his optimistic econ growth and CPI

outlook for Japan. For our POLICY piece see MNI Main Wire at 01:33 BST 04/08.

- Worth noting the BoJ cut its assessment of 3/9 regions and raised its

assessment of 1 region.

- Little immediate impact was noted on the back of domestic data releases.

- Bears look for a breach of the aforementioned Apr 4 low of Y111.34, hoping to

gain some downside impetus. This would allow them to set their sights on

Y111.21, which limited losses the day before. Meanwhile bulls need to retake the

200-DMA/100/HMA at Y111.49/51 before challenging Friday's high of Y111.82.

- Japanese focus turns to domestic PPI, core machine orders & comments from BoJ

Gov Kuroda due Wednesday.