Japan To Extend State Of Emergencies In 19 Prefectures

USD/JPY meandered Wednesday, with both sides of the pair holding firm against most of their other G10 peers as the risk switch was flicked to off.

• Japan is set to announce tweaks to its Covid-19 countermeasures. The government is reportedly planning to extend the state of emergency in 19 prefectures including Tokyo and Osaka through the end of the month, while loosening restrictions in Miyagi and Okayama. Kyodo sources flagged that the authorities want to relax curbs across the country around November. The government is also looking into shortening the self-isolation period for vaccinated foreign visitors to 10 days.
• PM Suga is reportedly planning to visit the U.S. before he steps down this month. He will participate in a meeting of fellow "Quad" leaders from the U.S., Australia and India.
• Former Internal Affairs Minister Takaichi formally announced her bid to become the next LDP leader, pledging to prioritise reaching the 2% inflation target over achieving a primary budget balance if she is voted into power.
• The preliminary reading of August machine tool orders provides the only point of note on Japan's data docket today.
• With USD/JPY last seen unch. at Y110.25, bears look for a dip through Aug 31 & Sep 3 lows of Y109.59 towards Aug 24 low of Y109.41. Bulls see Sep 8/Aug 13 highs of Y110.45/46 as their initial target and a break here would expose Aug 11/Jul 7 highs of Y110.80/82.