Gov't Considers Extending & Expanding State Of Emergency

USD/JPY was biased lower Thursday as both sides of the pair went offered amid firmer risk appetite, with Japanese participants back in the game after the Golden Week. The rate fell for the second day in a row, extending its weekly loss.

• The gov't may extend and expand the Covid-19 state of emergency, with final decision expected today. Emergency declarations in Tokyo & Osaka may be extended through the month-end, with Kyoto & Hyogo also planning to seek extensions. The central gov't also considers implementing limited restrictions across a range of other prefectures, Kyodo reported. Asahi spoke with an Organising Committee of Tokyo 2020 Olympics source, who said IOC Pres Bach may cancel his visit to Japan scheduled for this month.
• Japan's labour cash earnings & final Jibun Bank Services PMI provide the main points of note on today's docket.
• Next week, focus moves to household spending (Tuesday) as well as BoP current account balance & Eco Watchers Survey (Thursday)
• USD/JPY last trades at Y109.08, virtually unchanged on the day. Y108.44, the low print of Apr 29, provides the initial layer of support, followed by bear trigger at Y107.48, which represents Apr 23 low. Bulls keep an eye on May 3 high of Y109.70 and a break here would expose Apr 9 high of Y109.96.