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FOMC Thursday seen opening the door to...>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: FOMC Thursday seen opening the door to a July rate cute and in turn
places pressure on the USD. USD/JPY broke below its rising trend line support at
Y108.09 (drawn off the Jan3 low) in the initial react, extending move to Y107.90
before closing the day at Y108.10. Early consolidation in Asia before Tokyo
brought pressure to bear, dropped rate to Y107.55 as the BOJ kept interest
rates, asset purchases and forward guidance unchanged. Recovery to Y107.80 met
resistance before it turned lower again to extend lows to Y107.47 in early
Europe(Y107.47 Jan4 low/Y107.48 Lower Bollinger Band 2%). A break here to expose
Y107.00.
- Option expiries of note for today's NY cut, Y107.00($1.02bln),
Y108.00-15($2.53bln).
- Markets await BOJ Governor Kuroda from around 0630GMT.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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