0520 GMT -- Yen showing immediate little reaction to the BOJ's monthly report in which it downgraded its overall assessment of the economy to say that adjustments were intensifying. -- Dealers had been braced for a grim report but some were still surprised by the downgrade, given the bank had also downgraded its view just a month ago. -- Reaction perhaps lessened by lack of liquidity with many investors on the sidelines ahead of major events later in the week. -- Dollar hovering at 124.98 yen having spent the entire session so far in a tight 124.74/125.13 range. -- Euro finding some demand on the yen cross and pushes up to the day's highs at 107.01 , though traders report stiff Japanese offers above there. -- Euro also edging up on the dollar to $0.8560 helped in part by reports BP is to buy the oil operations of German group E.ON, implying some need for BP to cover its euro exposure.