Japan May Snap Tariffs On U.S. Beef Imports, Suga To Receive First Dose Of Covid Jab

USD/JPY advanced Monday, though moving along a wobbly trajectory. The initial upswing allowed the pair to print fresh multi-month highs in the London morning, but USD/JPY trimmed gains later on.

• NHK & Kyodo reported that the Japanese gov't is set to trigger safeguard tariffs on beef imports from the U.S., as their volume is poised to exceed the agreed quota.
• Elsewhere, NHK noted that Japan may decide whether to extend the state of emergency in the Tokyo area on Thursday (which is in line with yesterday's Sankei report).
• PM Suga will receive his first dose of the Covid-19 vaccine today and is expected to get the second dose before he travels to the U.S. to meet with U.S. Pres Biden next month.
• USD/JPY 1-week ATM implied volatility had a look above 8.00% this morning for the first time since Nov 4, as the next FOMC meeting approaches.
• The rate last sits at Y109.15, little changed on the day. A break above the 61.8% retracement of the Mar 2020 - Jan 2021 slide at Y109.56 would shift focus to Jun 8, 2020 high of Y109.70. Conversely, a fall through Mar 10 low of Y108.34 would open up Mar 5 low of Y107.82.
• Final industrial output headlines the Japanese docket today. Looking further afield, focus turns to trade balance (Wednesday), BoJ MonPol decision (Thursday) & national CPI (Friday).