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

DOLLAR-YEN
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.

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