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Decent demand for the spot into the......>

DOLLAR-YEN
DOLLAR-YEN: Decent demand for the spot into the Tokyo fix elevated USD/JPY to
Y107.53 yesterday. The rate took out resistance from Jul 14 high of Y107.43, but
the 100-DMA capped further gains and the rate pulled back from intraday highs.
- The Nikkei reported that the Japanese gov't will lift its economic assessment
as it sees signs that the economy is bottoming out.
- Japanese CPI readings for June fell in line with expectations.
- USD/JPY last trades at Y107.25, virtually unchanged on the day. A breach of
the 100-DMA at Y107.53 is needed to expose Jul 7 high of Y107.79. Meanwhile, a
dip through Jul 15/10 lows of Y106.67/65 would allow bears to target Jun 23 low
of Y106.07.
- Focus in Japan falls on local CPI data today, ahead of Wednesday's release of
flash Jibun Bank PMIs. Japan observes holidays on Thursday and Friday.

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