Between The Lines

JPY has been the main G10 FX beneficiary of the risk-off feel to Asia-Pac trade (with Asia-Pac COVID worry, lower oil prices & U.S. Tsy yields, alongside softer equity markets at the fore), although USD/JPY has stuck to a 25 pip range, last trading 15 pips or so lower, just above Y109.90.

• As a reminder, Friday's session saw the rate stick within the confines of last week's range, with the early, modest uptick in U.S. Tsy yields boosting the cross, before the reversal in yields and downtick in U.S. equity markets weighed, allowing a correction from intraday highs.
• The broader docket is relatively sparse on Monday, with the European perception of the weekend news likely to shape matters into NY dealing (barring the release of any tier 1 headline flow). An address from U.S. President Biden re: the economic recovery will likely provide the most interest in terms of risk events that are scheduled for NY hours (11:30 Eastern, 16:30 London).
• From a technical perspective bears need to force a break below the July 8 low/bear trigger (Y109.53), with the next target below there located at the July 7 low (Y109.19). Bulls need to breach the highs from July 14/7 (Y110.70/82) to regain a sense of control.