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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

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USD/JPY extended its bullish run Tuesday as the greenback led gains among G10 currencies amid month-end and quarter-end flows and higher U.S. Tsy yields, even as the broader risk tone was negative.

  • Japan ruling party's leadership election steals the limelight today (click here for more colour on the matter). The results of the first round of voting will be announced at 14:20 JST. It the runoff vote takes place, its results will be announced at 15:40 JST.
  • In addition, BoJ Gov Kuroda will appear alongside Fed, ECB & BoE chiefs on policy panel discussion at ECB Forum on Central Banking. On Thursday, Kuroda will speak at a JASDA conference.
  • On the data front, focus turns to Japan's retail sales & flash industrial output (Thursday) as well as unemployment, Tankan Survey & final Jibun Bank M'fing PMI (Friday).
  • USD/JPY overnight implied volatility crept higher this morning, as we await the outcome of LDP leadership race. It last sits at 9.30%, the highest level since Sep 22, when both the BoJ & FOMC delivered their monetary policy decisions.
  • USD/JPY trades +4 pips at Y111.54, with bulls looking for a break above yesterday's/Jul 2 highs of Y111.64/66, which would clear the way to Mar 24 high of Y111.71. Bears see Sep 8 low of Y110.45 as their initial target.