Renewed risk appetite, alongside the.....>

DOLLAR-YEN: Renewed risk appetite, alongside the USD/JPY-U.S. yield correlation

snapping back into play, has seen USD/JPY comfortably hold above Y112.00,

returning focus to the July 19 high at Y113.17, while bears need a break back

below Y111.60 to shift the outlook neutral.

- The BOJ left its MonPol settings unchanged at its latest MonPol decision as

exp. with 2 dissenters at the meeting. Harada wanted the forward guidance

adapted to further clarify its relation with the Bank's CPI target, as he deems

the current guidance as too ambiguous. Kataoka continued to dissent against the

idea that inflation will converge to 2%.

- Gov. Kuroda's press conference offered little fresh insight, focusing on trade

war issues and the potential knock on effects for the Japanese economy. Kuroda

also noted that there is no gap in opinion between the BOJ and the government

regarding the side-effects of prolonged monetary easing.

- Focus now turns to the ruling LDP party's leadership election, due today & the

week's remaining Rinban operations, due Friday.