The pair was ready to start the U.S. session negative and clinging to the 20-day moving after at 116.77. Overnight, support at 116.35 held. That level is the downside target of 116.85, Gann 50-point pivot.
BOJ Gov. Masaru Hayami changed his tune from last week, saying he isn't particularly concerned about the JPY exchange rate. Last week, Hayami said the yen is too weak. Finance minister Kiichi Miyazawa said the U.S. economy slowdown may cut Japan's growth by 0.4-0.6%.
Japanese econ data made no splash:
* Preliminary January CPI for the Tokyo metropolitan area came in at 100.5, down 0.4% year-on-year, and unchanged from the previous month. The nationwide December CPI figure also was down 0.2% year-on-year and unchanged from the previous month.
* Sales by major Japanese retailers in December totaled 2.571 trillion yen, down 5.4% yer-on-year, after adjustment for the number of stores.
* Domestic production of autos in Japan for December came in up 4.7% year-on-year to 807,506 vehicles. It was the first increase in two months. Next support is at 116.35, downside target of 116.85 Gann 50-point pivot.
The outlook is mixed to bearish.

Support: 116.35 (downside target of 116.85 Gann 50-point pivot), 116.33 (overnight low), 115.50 (Gann 50-point pivot; targets: 115.00/116.00), 114.20 (Gann 50-point pivot; targets: 113.70/114.70).
Resistance: 116.77 (20-day moving average), 117.00 (overnight high), 116.85 (Gann 50-point pivot; targets: 116.35/117.35), 118.25 (Gann 50-point pivot; targets: 117.75/118.75), 119.00 (38.2% Fibonacci retracement level of the August 1998-December 1999 downtrend), 119.65 (Gann 50-point pivot; targets: 119.15/120.15), 119.90 (Jan. 18 high; 18-month high).