USD/JPY last trades at Y111.78, a........>

DOLLAR-YEN: USD/JPY last trades at Y111.78, a fresh YTD high. The pair managed

to advance 35 pips on the back of a broader risk-on theme evident through the

Asia-Pac session. The yen came under pressure around the Tokyo fix, before

stronger than exp. Chinese Caixin m'fing PMI boosted risk appetite (although the

index remained in sub-50 territory), adding weight on JPY. BBG reports pointing

to MUFG closing in on the purchase of DZ Bank's aviation arm also pressured JPY.

- The yen largely ignored domestic data, although Japanese capex & Tokyo core

CPI topped exp., while final Feb Nikkei m'fing PMI was revised to 48.9 from the

flash 48.5. Elsewhere, unemployment printed at 2.5% vs. prev. & exp. 2.4%.

- Bulls look for a break above the aforementioned YTD high before attempting a

move at the upper 1.0% 10-DMA envelope at Y112.04. Conversely, initial support

is located at Y111.63, which represents the upper Bollinger band (2%), ahead of

the Dec 21 high of Y111.46.

- Japanese focus next week turns to domestic GDP and BoP data (c/a balance &

trade balance) due Friday, as well as the usual BoJ Rinban ops. Elsewhere, BoJ's

Harada will speak on Wednesday.