USD/JPY eased off, last trades 19 pips...>

DOLLAR-YEN: USD/JPY eased off, last trades 19 pips lower at Y108.59. The rate

edged higher initially, amid a modest risk-on feel, but topped out shy of

resistance from the Jul 10 high at Y108.99 and faded. The slide was slightly

helped by the latest BoJ monetary policy decision, which disappointed dovish

calls for a tweak to the forward guidance. Policy settings also remained

unchanged, while CPI & GDP forecasts were trimmed at the margin, in what turned

out to be a rather uneventful announcement. The downswing continued as GBP/JPY

sales spilled over, supporting JPY across the board.

- Japanese data releases affect to drive price action. Unemployment printed at

2.3% vs. exp. of 2.4%; industrial output contracted by 3.6% M/M, according to

the flash reading, undershooting the MNI forecast of a 2.0% decline.

- Bears remain focused on the 50-DMA at Y108.36. Conversely, a recovery and

break above the Jul 10 peak at Y108.99 would expose the upper Bollinger band

(2%) at Y109.07.

- BoJ Gov Kuroda's presser is expected today. BoJ's Amamiya speaks on Thursday

and Friday will see the minutes from the Bank's Jun policy meeting.