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USD/JPY was range-bound on Thursday as...>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY was range-bound on Thursday as both sides of the pair drew
support from haven demand. It finished the day a few pips below neutral levels,
as the yen landed at the top of the G10 pile.
- Yomiuri reported that "the BoJ is expected to maintain its scenario that
Japan's economy will continue improving in the second half of this year in its
quarterly economic outlook report".
- Tokyo coronavirus case count remains under scrutiny, with Tokyo Governor Koike
noting that yesterday's record daily tally is a warning. That said, Chief
Cabinet Secretary Suga said that there are no plans to declare a state of
emergency.
- With USD/JPY trading flat at Y107.21, bears look for a break below Y106.80,
which limited losses on Jun 26. This would open up Jun 23 low of Y106.07.
Conversely, bulls need to take out Jul 1 high of Y108.16 before targeting the
upper 1.0% 10-DMA envelope at Y108.53.
- Japanese PPI data headlines today. Next week, local docket features final
industrial output (Tuesday) and BoJ MonPol decision (Wednesday).

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