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Positive risk backdrop allowed USD/JPY...>

DOLLAR-YEN
DOLLAR-YEN: Positive risk backdrop allowed USD/JPY to cross above a bull trigger
at Y108.94 and stage an attack at its 200-DMA (Y109.06) on Monday. The level
didn't give way, but remains firmly in sight. After a spell of range-bound
trade, the pair posted a leg higher as U.S. Pres Trump said that phase one trade
talks with China are ahead of schedule and the two sides will probably sign off
on an agreement during the APEC summit next month. Gains were extended amid
rallies in U.S. equity benchmarks, with S&P 500 printing a record high. A round
of purchases was seen into the WMR fix, taking USD/JPY to its intraday peak.
- As mentioned, the 200-DMA provides the initial topside target, with a break
opening Y109.32/37, the high of Aug 1/61.8% retracement of the Apr 24 - Aug 26
decline. Bears look for a retreat under the YtD mid-point of Y108.43.
- Tokyo CPI report is due shortly. Looking further afield, Japanese retail sales
hits on Wednesday, flash industrial output come out on Thursday, while
unemployment & final Jibun Bank m'fing PMI are due on Friday. On Thursday, the
BoJ will deliver its monetary policy decision.

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