USD/JPY last Y109.80, 16 pips higher,....>

DOLLAR-YEN: USD/JPY last Y109.80, 16 pips higher, as broader risk-off flows

pulled JPY to the bottom of the G10 pile. Japanese stocks & U.S. equity futures

advanced, with S&P 500 futures breaching yesterday's highs. Worth mentioning

early Tokyo hours saw a stronger than exp. Tokyo CPI print, with the core

reading accelerating to 1.1% in Jan, but still well shy of the BoJ's 2% target.

MNI understands that the BoJ remains cautious in its inflation outlook, as the

aforementioned CPI acceleration is seen driven by higher crude prices & will

likely dissipate (for our Insight piece see MNI Main Wire at 03:15 GMT 01/25). 

- Initial topside attention is drawn by the Jan 23 YTD high of Y110.00. A break

above would open up the upper 1.0% 10-DMA envelope at Y110.39. Conversely, bears

eye yesterday's low of Y109.42 before challenging the Cloud Kijun Sen & Cloud

Tenkan Sen at Y109.07. 

- Japanese highlights next week include retail sales due Weds, industrial output

due Thurs, labour mkt data due Fri & the BoJ Rinban ops. Elsewhere, Thurs will

see remarks from BoJ Dep Gov Amamiya & BoJ Dep Gov Nakaso (alongside PM Abe), as

well as the release of BoJ summary of opinions from its Jan MonPol meeting.