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USD/JPY has added 6 pips thus far and....>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY has added 6 pips thus far and last deals at Y111.94, as WSJ
& BBG reports re: the U.S. & China being close to signing a trade continue to
feed the broader risk appetite, while USD remains capped by weekend comments
from U.S. President Trump, who stated that the greenback is currently too strong
and lamented FOMC policy under Powell.
- The rate advanced 50 pips Friday, as JPY was weighed on by a stronger than
exp. Chinese Caixin m'fing PMI print & BBG reports pointing to MUFG closing in
on the purchase of DZ Bank's aviation arm before broader dollar strength came
about in London/NY hours, on the back of higher Tsy yields, lifting the pair to
a fresh YTD high of Y112.08.
- Initial resistance noted at the aforementioned YTD high, ahead of the upper
Bollinger band (3%) at Y112.22. Meanwhile, bears eye the upper Bollinger band
(2%) at Y111.67, followed by Y111.46, which represents the Dec 21 high.
- Japanese focus this week turns to domestic GDP and BoP data (c/a balance &
trade balance) due Friday, as well as the usual BoJ Rinban ops. Elsewhere, BoJ's
Harada will speak on Wednesday.

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