Having briefly dipped under Y111.00 on...>

DOLLAR-YEN: Having briefly dipped under Y111.00 on Tuesday, USD/JPY improved to

a high of Y111.34 in NY dealing, which was bettered in Asia as the cross touch

Y111.38, last Y111.25. The pair paid little attention to a Nikkei story noting

that "the BOJ is unlikely to make changes to its ultra-loose monetary policy at

least until October, five key BOJ watchers believe, despite talk that growing

concern over the side effects of prolonged easing could prompt action next

week." Some even believe that more easing is on the table to stoke price growth,

according to the piece.

- This is largely in line with MNI's understanding, in that the Bank of Japan is

unlikely to raise interest rates anytime soon amid slow inflation and concerns

about the drag from U.S. trade rows on global growth, but the BOJ board is

expected to discuss ways to reduce the side-effects of prolonged large-scale

monetary easing at its July 30-31 meeting. With further discussion on corrective

measures potentially taking place in September.

- Support is noted at Monday's low (Y110.74) with resistance at Monday's high

(Y111.54).