USD/JPY finds a footing as it nears 139.00 in reversal

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The US dollar is catching some bids as New York trading ramps up to start the week, led by USD/JPY.

This might be a reaction to the softer Chinese data earlier and to Janet Yellen talking about potential outbound investment controls related to China. It could also be a follow-on to the US dollar strength late last week.

The antipodean currencies are at session lows to go along with the US dollar bid. AUD/USD is down 40 pips to 0.6798.

US 2-year yields have risen to 4.75% from 4.72% and that could be a small part of the equation.

S&P 500 futures are down 6 points.

The Fed blackout started on Saturday so it will be a quiet week in terms of central bank chatter. The Fed funds market is pricing in a 92% chance of a hike on July 26 but little chance of another one in September.

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