USD/JPY has inched lower, last deals 7...>

DOLLAR-YEN: USD/JPY has inched lower, last deals 7 pips worse off at Y108.71.

- The rate traded sideways on Wednesday in the run-up to the monetary policy

decision from the FOMC. A 25bps cut didn't surprise anyone, but the decision was

accompanied by Fed Chair Powell's assertion that the rate move does not mark the

beginning of a longer easing cycle, but is merely an insurance to keep up the

generally favourable outlook. USD/JPY jumped as a result, hitting a ceiling at

Y109.00, and closed up 17 pips.

- Bulls look for a lift above the high of Jul 10 at Y108.99 and the Y109.00

mark. Above opens the upper Bollinger band (2%) at Y109.15. Conversely, a

retreat towards the 50-DMA/21-DMA at Y108.31/30 would please bears.

- The BoJ said that it will leave the frequency and a range of its JGB purchases

unchanged in August.

- Japan is set to proceed with removing S. Korea from its trading white list.

Local media reported that the gov't may sign off on the decision on Aug 2.

- BoJ Deputy Governor Amamiya will speak later today, while minutes from the

central bank's June policy meeting will be published tomorrow.