Japan Returns From Holidays

USD/JPY extended its winning to four days in a row on Monday, with the rate recouping its initial losses over the WMR fix. Participants scrutinised U.S. NFP report released Friday and assessed the global coronavirus situation, amid little in the way of market moving news flow seen elsewhere. Holiday market closure in Japan thinned out liquidity.

• Approval for the Japanese cabinet fell 2pp to 35% in the latest Yomiuri poll, which comes on the heels of an Asahi survey, which saw support for PM Suga plunge to a record low.
• Kyodo reported that PM Suga will speak with U.S. Pres Biden on the phone. U.S. Sec of State Blinken spoke with Japanese National Security Advisor Akiba and Japanese business leaders on Monday.
• Sankei reported that PM Suga will ask officials to draft a stimulus package, which would be funded by a Y30tn extra budget. The government will aim at compiling the package before the next general election.
• Japan's MoF will report June BoP current account balance today, which will be followed by the release of the latest Eco Watchers Survey later in the day.
• USD/JPY trades flat at Y110.29, with bulls looking for a break above Jul 23 high of Y110.59. Such a move would bring Jul 14 high of Y110.70 into play. On the flip side, a fall through Aug 4 low of Y108.72 would clear the way to May 25 low of Y108.56.