Japan Closed For Holidays, Weekend News Flow Under Scrutiny

USD/JPY has recouped its opening downtick and last trades at Y109.34, marginally above the previous close. The rate has stuck to a narrow range thus far, as participants have digested U.S. Tsy Sec Yellen's comments downplaying speculation re: emerging inflationary pressures & headlines surrounding the U.S.-Iran situation. Market holidays in Japan, which last through Wednesday, are set to sap JPY liquidity over the coming days.

• A magnitude 6.8 earthquake hit off Japan's northern coast, disrupting bullet train service and leading to precautionary checks at nuclear power plants, but no irregularities have been found as of yet.
• Kyodo cited the Health Ministry/contracted medical services firm, who suggested that as many as 200-300 people in Japan may be breaking quarantine every day.
• Japan comes back on Thursday to see the release of domestic vehicle sales, with earnings data & final Services Jibun Bank PMI coming up on Friday.
• A move through Apr 30 high of Y109.37 would turn bullish focus to Y109.96, the high print of Apr 9. On the downside, the initial target is provided by Apr 27 low of Y108.08 and a break here would open up Apr 23 low of Y107.48.