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JPY Falters On Optimism Re: U.S. Fiscal Talks & Trump's Health

DOLLAR-YEN

USD/JPY started the week with a leg higher, as mood music surrounding U.S. fiscal negotiations seemed to improve a tad, while U.S. President Trump's medical stuff said that he might be able to leave hospital as soon as on Monday. Despite lack of any firm breakthrough in the fiscal talks the administration of experimental drugs to the POTUS, which raised some eyebrows, USD/JPY climbed to Y105.58 before easing off. It last trades +25 pips at Y105.54, heading back towards earlier highs.

  • The latest JNN poll showed a decent 8.3pp increase in support for PM Suga's government, putting the figure at 70.7%.
  • A break above the 50-DMA/Sep 30 high at Y105.75/80 would bring Sep 8 high of Y106.38 into play. On the flip side, bears look for a dip through Sep 23 low of Y104.88 before targeting Sep 22 low of Y104.41.
  • Final readings of Japanese Jibun Bank Services/Composite PMIs are due today, with BoP current account balance and Eco Watchers Survey coming up on Thursday and earnings/spending data due Friday.

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