USD/JPY trades at Y111.89, 59 pips.......>

DOLLAR-YEN: USD/JPY trades at Y111.89, 59 pips lower on the day and just below

the psychological level/option-related support at Y112.00. The yen garnered

strength from risk off flows, with the Nikkei 225 setting a fresh 2018 low at

one point, while other regional benchmark indices registered losses as well.

U.S. equity index futures started the session on the front foot, but slipped

subsequently, and now are also in the red. BoJ MonPol decision brought no

changes to the policy rate and entailed no apparent market reaction. The bank

said it sees Japan's economy expanding moderately, despite downside risks. 

- Worth noting Japan's Topix Index entered bear-market territory after falling

>20% since January peak. 

- The pair broke below the aforementioned Y112.00 level, which shifts bearish

attention to reported support at Y111.80, followed by the lower Bollinger band

(3%) at Y111.73 and the Oct 26 low of Y111.38. On the topside, initial focus

falls on the cloud base at Y112.46. Bulls need to jump onto that level before

challenging yesterday's high at Y112.67. 

- Japan awaits national inflation figures due tomorrow.