Japan Off For Holidays

USD/JPY has shed 7 pips so far and last trades at Y104.50, even as e-minis have pared initial losses. This keeps the rate on course for extending its current losing streak to six consecutive days, as it hovers close to a seven-week low printed on Friday.

• Japan's new PM Suga has held his first phone calls with other leaders, including U.S. President Trump and Australian PM Morrison, both of whom expressed hope for deepening bilateral cooperation.
• Sankei reported that Japan may deploy a sea-based missile defence system after scrapping plans to deploy the Aegis Ashore system.
• Bears look for a dip through the 1.382 projection of the Aug 13 - 19 rally from Aug 28 high at Y104.26, which limited losses on Friday. Below there opens Jul 31 low of Y104.19, a key near-term support. Bulls target Sep 17 high of Y105.17 and a rally beyond there would turn focus to the 20-EMA at Y105.58.
• Japan observes its national holidays and won't be back until Wednesday. Flash Jibun Bank PMIs are due that day, with BoJ Jul MonPol meeting minutes coming up Thursday.