USD/JPY last trades at Y109.30, a few....>

DOLLAR-YEN: USD/JPY last trades at Y109.30, a few pips lower on the day, after

closing 20 pips lower Monday on the back of modest risk aversion, as U.S. stocks

registered losses. Focus fell on earnings season, with early support for the

space driven by soft earnings from Caterpillar and downward revisions to

guidance from Nvidia, both citing China as a source for concern. 

- Worth noting the BoJ released its Dec meeting minutes yesterday, with 1 member

saying that there is room for revising JGB buying. 

- Bears look for a breach of Y109.16, where USD/JPY bottomed Monday, before

shifting focus to the 21-DMA at Y108.99. A break below the 21-DMA would suggest

the resumption of a broader bearish trend. Conversely, bulls look to Monday's

peak at Y109.60 and a jump above would bring the Jan 23 YTD high of Y110.00 into

view. 

- Japanese focus this week turns to retail sales due Weds, industrial output due

Thurs, labour mkt data due Fri & usual BoJ Rinban ops. Elsewhere, BoJ Dep Gov

Amamiya & BoJ Dep Gov Nakaso will speak Thursday (alongside PM Abe), while the

BoJ summary of opinions from its Jan MonPol meeting comes out on the same day.