• USD/JPY steadies after sinking to a 6-wk low of 153.72 amid haven demand

• Rebound in pair is limited as AI-led drop in equities weighs on risk taking

• Support at 153.88 cloud top may hold until Fed policy decision midweek

• Long positions after Dec. Fed meeting unravel as Jan. winds down

• Needs to move above 154.96 55-DMA and 156.76 Jan. 23 high to encourage bulls

• Risk reversals swing in yen's favor though vols are off day's high

• Yen crosses remain pressured as oil drops, ECB is seen cutting on Thursday

• Japan to eye services PPI on Tuesday
yen

(Robert Fullem is a Reuters market analyst. The views expressed are his own.)