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USD/JPY edged higher in early............>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY edged higher in early indicative trade and despite easing
off sits a touch above neutral levels, at Y108.73. The uptick was likely driven
by a light risk-on feel inspired by new signals re: progress in U.S.-China trade
talks & Friday's showing from S&P 500, which neared record highs.
- This comes after the pair closed slightly higher Friday, amid positive risk
appetite & after S&P 500 flirted with record highs.
- From a technical point of view, a break above the Oct 17 high of Y109.94 would
encourage bulls to target the 200-DMA at Y109.06. Worth watching the 50-DMA,
which threatens to break above the 100-DMA. Bears look for a retreat below
Y108.36, the 23.6% retracement of the Oct bull market.
- Ex-BoJ Gov Shirakawa expressed doubts that the "Japanification" of monetary &
fiscal policy in other countries will prove effective.
- The Japanese docket this week is headlined by Thursday's monetary policy
decision from the BoJ. Data-wise, highlights include Tokyo CPI (Tuesday), retail
sales (Wednesday), flash industrial output (Thursday), as well as unemployment
and final Jibun Bank m'fing PMI (Friday).

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