BoJ Minutes Come And Go

USD/JPY ground lower in Tuesday's Asia-Pac hours, before dipping to the intraday low of Y108.41 in the London morning amid a parallel fall in S&P e-minis despite little in the way of fresh news flow. Sentiment was sapped by the tightening of lockdown measures in several European countries. The rate gradually moved away from lows thereafter, but failed to recoup neutral levels.

• Japanese flash Jibun Bank PMI readings improved at the margin, but accompanying commentary noted that "Activity at Japanese private sector businesses remained subdued at the end of the first quarter of 2021, as flash PMI data pointed to a sustained deterioration in business activity."
• The BoJ released minutes from the January MonPol meeting, with some members signalling the need for making clear that the BoJ isn't softening its dovish stance.
• USD/JPY staged a round trip to a session low of Y108.50 this morning and last trades at Y108.58, virtually unchanged on the day. Bears look for a dip through Mar 10 low of Y108.34 before taking aim at the 20-EMa at Y108.06. Bulls need a clearance of Mar 15 high of Y109.36 before targeting the 76.4% retracement of the Mar 2020 - Jan 2021 slide at Y109.56.
• Looking ahead, Tokyo CPI will take focus on Friday.