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BoJ Up Today

JPY

USD/JPY edged lower Thursday, with both sides of the pair benefitting from renewed demand for safe haven currencies. The rate fluctuated through the day, but the yen had the upped hand, even as Thursday was a Gotobi Day in Japan.

  • Kanagawa prefecture mulls seeking a Covid-19 state of emergency, according to a Yomiuri source report, with local officials concerned about the implications of the upcoming Olympic Games for the public health situation.
  • BBG sources said that opinions are split within the central bank/financial sector about whether commercial lenders should be rewarded for green lending.
  • The BoJ will deliver their monetary policy decision today, which will come alongside the latest outlook report (click here to see our comprehensive preview).
  • Looking further afield, next week's highlights include CPI (Tuesday) and trade balance (Wednesday).
  • USD/JPY last seen at Y109.78, just shy of neutral levels. Bears look for losses past Jul 8 low of Y109.53, which would open up Jun 7 low of Y109.19. On the flip side, a jump above Jul 14 high of Y110.70 would clear the way to Jul 7 high of Y110.82.

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