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USD/JPY had a strong session Monday,.....>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY had a strong session Monday, underpinned by buoyant risk
appetite. The imminent signing of phase-one Sino-U.S. trade deal lent support
from the off, with liquidity thinned by a Japanese holiday. The European morning
brought a key technical development, as USD/JPY punched through the Y109.68-73
resistance zone resulting in a fresh round of demand. The rate remained elevated
as U.S. Tsy was expected to drop China off its list of FX manipulators (which
came to fruition), while new record-highs printed by the S&P500 suggested that
the risk switch was still turned to on.
- USD/JPY last deals at Y109.93, barely changed. It continues to operate at its
best levels since May 2019, following yesterday's rally. The May 30/Monday's
highs of Y109.93/95 are limiting the topside at the moment, but clean break here
would bring the the May 21 high of Y110.67 into focus. Bears look for a fall
below the 50-DMA/Jan 9 low at Y109.04/01.
- Japan returns from a national holiday today, with the release of domestic BoP
data & Eco Watchers Survey. BoJ Gov Kuroda speaks on Wednesday, while PPI & core
machine orders hit on Thursday.

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