USD/JPY sits 6 pips higher at Y107.77....>

DOLLAR-YEN: USD/JPY sits 6 pips higher at Y107.77 after rallying 41 pips Friday.

- On Friday, the upside momentum was ignited early doors by a clarification to

earlier comments from Fed's Williams, now downplayed as "academic." This put a

bid into USD, prompting the pair to test Y107.60. The level was breached into

Europe as USD continued to gain poise. Another leg higher was noted as a WSJ

story suggested the Fed may cut by 25bps rather than 50bps at the next meeting.

- The 21-DMA is located at Y107.99, provides the initial bullish target. A break

would open Y108.11, the 23.6% retracement of the Y112.40-Y106.48 slide. Bears

look to Y108.22/21, which limited losses last Thursday and Friday.

- Japanese ruling coalition won Japan's upper house election as expected, but

failed to secure a 2/3 supermajority needed to change the constitution.

- BoJ Gov Kuroda said he "totally disagrees" with Modern Monetary Theory, now

"fashionable even in Japan." He pledged commitment to central bank independence

and reiterated the BoJ's readiness to respond to slowdowns in price momentum.

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

Friday. BoJ Rinban ops are scheduled for today & Friday.