Japan Ready To Tighten Curbs If Needed

USD/JPY has edged higher this morning, but has been happy to hold a narrow range. The rate last operates at Y110.80, 5 pips better off.

• In the latest Nikkei poll, more Japanese residents showed willingness to get vaccinated, while an Asahi poll showed that some 64% of Tokyoites wanted the Olympics to be held without spectators.
• NHK reported that Tokyo Gov Koike would extend her leave by "a few more days," after being admitted to a hospital last week. As a reminder, the capital will elect members of its prefectural assembly on Jul 4. Tokyoites First, the largest party in the local legislature, asked Koike (who is also its founder) to become its leader.
• Meanwhile, Japan's Covid-19 response czar Nishimura signalled that the central gov't stands ready to declare a fresh state of emergency amid a deteriorating virus situation in Tokyo.
• We're off to a quiet start to the week, with little outside of the summary of opinions from the BoJ's latest MonPol meeting due. Local data releases pick up on Tuesday, with the publication of unemployment & retail sales. Flash industrial output will follow up on Wednesday, with Tankan survey & final Jibun Bank M'fing PMI coming up Thursday.
• Bullish focus falls on Jun 24 high of Y111.12 and a break here would open up Mar 24, 2020 high of Y111.71. Bears look for a dip through Jun 22 low of Y110.21, towards Jun 21 low of Y109.72.