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Stronger In a Range


Weaker In A Range


Ending The Week On A Soft Note


Bearish Risk Growing


Stronger, But Still Vulnerable


SP500 PE Ratio vs. CPI Inflation

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USD/JPY faltered Thursday, even as a beat in U.S. CPI briefly pushed the rate higher. Gotobi day flows failed to translate into any meaningful JPY weakness. The pair last changes hands at Y109.38, a handful of pips higher on the day.

  • A break above Jun 4 high of Y110.33 would open up Apr 6 high ofY110.55. Conversely, losses past Jun 7 low/50-DMA at Y109.19/11 would expose May 25 low of Y109.56.
  • Mainichi reported that Japan wants to lift the Covid-19 state of emergency in most regions, including Tokyo and Osaka, on Jun 20. The formal decision is expected next week, but the gov't may leave relatively strict measures in place until the Olympic Games, even if emergency is terminated.
  • The Japan Times reported that a panel of experts advising the Health Ministry on Covid-19 response projected that another state of emergency in Tokyo may be needed in Aug, it the current emergency ends as planned on Jun 20.
  • Separately, Jiji reported that Japanese advisers are set to warn over holding the Olympics with spectators and noted that Tokyo plans to cancel all Olympic public viewings.
  • The Ministry of Finance will publish their quarterly Business Outlook Survey today.
  • Next week's highlights include final industrial output (Monday), trade balance & core machine orders (Wednesday) as well as national CPI & BoJ MonPol decision (Friday).