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Headline Flow Dominated By Political Horse Trading

JPY

USD/JPY rose to its intraday high of Y110.16 into Monday's London morning before losing steam and giving away the bulk of those initial gains. Local headline flow failed to provide any meaningful catalysts, with the race to replace PM Suga still providing much interest.

  • Yomiuri reported that Japan's former Defence Min Ishiba will forgo declaring his candidacy to back Taro Kono. Environment Min Koizumi is set to declare support for Kono as soon as today, while PM Suga is also willing to support Japan's vaccine czar.
  • Japan's final industrial output data will hit the wires today, core machine orders will come out tomorrow, while trade balance will be published on Thursday.
  • USD/JPY trades flat at Y109.99, with bulls looking for an upswing above Sep 8/Aug 13 highs of Y110.45/46 towards Aug 11/Jul 7 highs of Y110.80/82. Bears eye Aug 31 & Sep 3 lows of Y109.59 for initial support and a break here would open up Aug 24 low of Y109.41.

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