USD/JPY broke below channel base.........>

DOLLAR-YEN: USD/JPY broke below channel base support on Wednesday, on reaction

to headlines re: U.S. implementing auto tariffs by year-end, touching Y110.83,

with Nikkei headlines stating that the BOJ is to review its allocation of ETF

buying further pressuring to Y110.67, despite the story noting that the BOJ is

set to downgrade its CPI outlook next week (which many are viewing as a given).

The agreement between the EU & U.S. re: trade matters pushed the cross higher in

late NY dealing, briefly reclaiming Y111.00, although follow-through was

lacking, last ~Y110.90. As noted earlier, at its July meeting, the BOJ will

consider allowing the nearly flat JGB curve to steepen slightly, recovering some

functions of the tepid market while keeping the stimulative effects of

large-scale monetary easing, MNI understands.

- The pair's break below the 21-DMA (Y111.39) and daily bull channel base off

'18 lows lacked follow through with the pair bouncing ahead of the 55-DMA

(110.51), with that level now providing support on any break below yday's low

(Y110.67). Bulls look for a close above the Jul 23 high (Y111.54).

- Next week's BOJ MonPol decision dominates the docket over the next week.