USD/JPY shed 24 pips overnight and.......>

DOLLAR-YEN: USD/JPY shed 24 pips overnight and last sits at Y109.31. The yen

outperformed in early Asia-Pac dealing, aided by risk aversion, as the Nikkei

225 started on the back foot, as the WSJ released an interview with U.S. Pres

Trump, who put chances of a bi-partisan deal to avert another gov't shutdown in

3 weeks at 50/50. JPY strength then waned somewhat, as broader yuan strength

came to the fore, but recovered somewhat as the Nikkei 225 touched fresh session

lows & yuan pulled back from best levels. Worth mentioning the BoJ released its

Dec meeting minutes, which revealed that the Bank is concerned by China's

slowing economy & the impact of oil prices on the inflation outlook. 

- Initial support noted at theJan 18 low of Y109.06, followed by the 21-DMA at

Y109.01. Conversely, bulls initially target Y109.60, which has capped today's

gains thus far, before challenging the Jan 23 YTD high of 110.00. 

- 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.