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USD/JPY registered a bullish outside.....>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY registered a bullish outside day on Monday, finishing 10
pips better off. Selling pressure was observed into the Tokyo fix amid risk
aversion & talk that the Japanese GPIF has initiated currency hedging for its
overseas investments. The pair hit support at Y108.42 and reversed course,
paring losses into the European session. After a period of sideways trading, it
posted a leg higher as JPY was sold into the London fix.
- The rate deals at Y108.82, a touch higher. Today's focus is on the BoJ, which
delivers its monetary policy decision, accompanied by their latest Outlook
Report. Also on today's docket are Japanese jobs data and industrial output (p).
- Later in the week, BoJ's Amamiya speaks on Thursday and Friday will see the
release of the minutes from the central bank's Jun policy meeting.
- USD/JPY is trading near the upper bound of its recent range. Bulls look to
Y108.99, where the rate peaked on Jul 10. A break above would reinforce the
underlying bullish tone, opening the upper Bollinger band (2%) at Y109.10. Bears
look for a retreat below the 50-DMA at Y108.36.

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