Decision On Emergency Declarations Expected On Friday

USD/JPY wavered Wednesday as broader risk appetite recovered, sapping strength from both USD & JPY. The rate finished just shy of the previous close, which allowed USD/JPY to extend its losing streak to three days in a row.

• Ex-BoJ off'l interviewed by BBG said that Japan's central bank "has reached the end of the line on normalisation for now" and the current leadership "has done pretty much all it can."
• The BoJ resumed ETF purchases yesterday after the Topix fell more than 2% in the morning session. Tuesday saw the Bank refrain from buying ETFs despite a 1% dip in the Topix, which had typically been a signal to buy.
• Japanese PM Suga said that the gov't wants to decide on whether to declare a state of emergency in several regions by the end of this week. A piece circulated by Asahi suggested that we can expect the decision on emergency declarations in Tokyo, Kyoto, Hyogo and Osaka on Friday.
• A South Korean court dismissed a civil suit against Japan over the wartime "comfort women," noting that Tokyo had sovereign immunity in the case.
• USD/JPY last sits at Y108.04, a touch lower on the day. A break below the 38.2% retracement of the Jan - Mar rally at Y107.77 would open up trendline support at Y107.70. A move through the 20-EMa at Y108.85 would allow bulls to take aim at Y109.96, the high print of Apr 9.
• Focus in Japan turns to national CPI & flash Jibun Bank PMIs, due Friday.