USD/JPY range-bound so far, last seen....>

DOLLAR-YEN: USD/JPY range-bound so far, last seen a touch lower at Y108.57.

- The rate climbed in yesterday's early Asia trade, but reversed course after

meeting stiff resistance at Y108.95. Subsequent slide was helped by the latest

BoJ monetary policy decision. Members left policy settings unchanged and only

marginally trimmed GDP & CPI forecasts, to the dismay of some doves. It has been

noted that the Bank added a phrase re: its readiness to ease policy if needed,

while BoJ Gov Kuroda said that the Bank is "more positive" towards easing, but

it didn't weaken JPY. The yen continued to gain poise as GBP/JPY selling spilled

over into other JPY crosses, lifting the currency. Risk aversion, emerging ahead

of the upcoming FOMC decision, provided further support to the yen, allowing it

to top the G10 pile at the end of the day.

- Nonetheless, the 50-DMA at Y108.32 remained intact yesterday. Bears look for a

move below the figure, followed by trendline support at Y108.20. Topside focus

falls on the Jul 10 high of Y108.99.

- BoJ's Amamiya speaks on Thursday. Friday will see the release of the minutes

from the central bank's Jun policy meeting.