Japan Back From Holidays, USD/JPY Pushes Higher

USD/JPY rallied over the WMR fix yesterday, as Fedspeak lent support to the greenback. Fed Chair Powell pointed to an uncertain road to recovery and called for further fiscal support, while Chicago Fed Pres Evans noted that the central bank could hike interest rates before inflation averages 2%. The rate gained for the second consecutive day, extending its move off a multi-month low located at Y104.00.

• Japan returns from its long weekend today. Asahi cited gov't officials noting that the gov't is considering allowing foreign visitors from all countries to enter Japan at the beginning of Oct, albeit their number would be capped at 1,000/day and wouldn't include tourists.
• Elsewhere, per Sankei Japanese Foreign Min Motegi is readying for visits to Germany and France, while Japanese PM Suga will speak with Chinese Pres Xi on the phone on Friday.
• USD/JPY has added 14 pips thus far and last trades at Y105.07, after testing Aug 19 low of Y105.10, a key near-term resistance. A clearance of this level would open up the 20-EMA at Y105.48. On the downside, a dip through Sep 21 low of Y104.00 would open up the 1.618 proj of the Aug 13 - 19 rally from Aug 28 high at Y103.80.
• Flash Japanese Jibun Bank PMIs hit the wires at the bottom of the hour, with BoJ Jul MonPol meeting minutes due tomorrow. BoJ Gov Kuroda will speak at an online meeting with Osaka business leaders later today.