USD/JPY last seen at Y108.21,............>

DOLLAR-YEN: USD/JPY last seen at Y108.21, virtually unchanged on the day.

- Improving risk appetite dragged the pair higher through yesterday's Asia-Pac

session and gains were extended in European hours, but the descending trendline

drawn off the Oct 15 2018 low at Y108.30 kept a lid on the rally. A softer than

expected existing home sales print in the U.S. put a temporary strain on the

pair, but resulting pullback was rather shallow and short-lived.

- Bulls look for a break above the aforementioned trendline resistance, which

today comes in at Y108.28. Above opens the 50-DMA at Y108.48. Conversely, a dip

through the 21-DMA at Y108.08 would give bears the green light for targeting the

Jul 19 high/200-HMA at Y107.98/97.

- A BBG source story suggested that the BoJ could lower its inflation forecast

for this fiscal year and downgrade its growth projections at next week's

monetary policy meeting. Yesterday, the IMF has trimmed its 2019 & 2020 growth

projections for Japan by 0.1pp each, to +0.9% Y/Y & +0.4% Y/Y respectively.

- Flash Jubun Bank PMI readings are due later today, with Tokyo CPI due on

Friday. The next round of BoJ Rinban ops is scheduled for Friday.