FX Action: USD-JPY has recouped to around 112.35
FX Action: USD-JPY has recouped to around 112.35, up a big figure from the Tokyo-session low but still down by net 0.7% on the day having closed on Friday around 113.15. Analysts, and analysts think the market, remain bullish. The OECD also looks to be bullish, forecasting in its latest economic outlook U.S. growth of 2.3% in 2017 versus 1.0% growth for Japan. The divergence in the growth outlook chimes with contrasting Fed versus BoJ policy biases, the former heading for a rate hike next month, and further tightenings next year amid an expected $1 tln fiscal stimulus from Trump, and the latter looking headed for a return to the monetary stimulus spigots by around April next year. The 2016 high at 121.68, seen back in late January, provides a framework for bulls. Support is at 111.30-36.