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USD/JPY last trades at Y108.86, barely...>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY last trades at Y108.86, barely changed on the day.
- The rate had a brief look above its 200-DMA yesterday as trade war optimism
supported risk appetite. The pair sold off into Europe but reported month-end
demand for USD limited losses. A leg lower was seen on the back of a RTRS report
citing an unnamed U.S. off'l as saying that the U.S.-China trade pact may not be
ready for signing when U.S. & Chinese Presidents meet in Chile next month, but
USD/JPY recovered promptly. The rate eased off slightly into the close,
finishing marginally in the red.
- A clean break above the 200-DMA at Y109.06 would bring the Aug 1 peak at
Y109.32 into view. Meanwhile, a retreat below the Oct 23 low of Y108.25 would
play into the hands of bears, clearing the way towards the Y108.00 mark.
- Japanese retail sales are due shortly. Flash industrial output and comes out
on Thursday, while unemployment & final Jibun Bank m'fing PMI are due on Friday.
- On Thursday, the BoJ will deliver its MonPol decision. Please see our
comprehensive preview at http://tiny.cc/BoJ

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