USD/JPY dipped yesterday, as EUR.........>

DOLLAR-YEN: USD/JPY dipped yesterday, as EUR strength linked to a fiscal accord

struck by EU leaders sapped strength from the greenback. The rate descended

towards support from Jul 15/10 lows of Y106.67/65, but failed to punch through

these levels as it bottomed out at Y106.69.

- Local coronavirus situation remains under scrutiny, with a panel of experts

expected to debate easing the current 5,000 attendance limit at public events

from Aug 1. Sankei reported that the authorities will opt to leave the limit as

it is, owing to the recent spike in Covid-19 cases.

- USD/JPY last deals at Y106.85, a touch higher on the day, as JPY trades on a

softer footing amid an early uptick in e-minis. A jump above Jul 20 high of

Y107.53 would prompt bulls to target Jul 7 high of Y107.79. Meanwhile, losses

past the aforementioned Jul 15/10 lows of Y106.67/65 would open up Jun 23 low of

Y106.07.

- Preliminary readings of Japanese Jibun Bank PMIs are due later today, before

the long weekend kicks off.