USD/JPY last trades at Y111.40, a........>

DOLLAR-YEN: USD/JPY last trades at Y111.40, a dozen or so pips higher on the

day, as the yen struggled overnight, although regional stocks posted losses. 

- As a reminder, Japanese core inflation slowed and came in at 0.9%, slightly

softer than expected and still short of the BoJ's target of 2%. 

- Japan's FinMin Aso spoke overnight as the cabinet approved a record draft

budget for the next fiscal year. 

- Bulls need to climb onto the Y111.50-55 figures, which represent $5.33bn

option expiries, before attempting a move at the psychological Y112.00 level.

Conversely, bears look for a break below the $1.27bn option expiry at Y111.00

before challenging yesterday's low of Y110.81. 

- Japanese focus next week turns to domestic unemployment rate, industrial

output, retail sales, Tokyo (core) CPI and BoJ summary of opinions all due

Friday. Elsewhere, BoJ Dec meeting minutes come out Wednesday and BoJ Gov Kuroda

will also speak Wednesday. Usual Rinban ops will be of interest as well.