Japanese Markets Closed, Kishida To Decide On Border Controls This Week

Spot USD/JPY sits at Y115.65 at typing, a touch higher on the day, with liquidity thinned out by a public holiday and resultant market closure in Japan.

• Bulls see Jan 4 cycle high of Y116.35 as their initial target and a move through that level would open up the 2.00 proj of Apr 23 - Jul 2 - Aug 4 price swing at Y117.08. Conversely, a dip through Jan 4 low of Y115.29 would draw attention to the 20-EMA at Y114.96.
• The Yomiuri Shimbun reported that the BoJ may raise their FY2022 inflation forecast at the Board meeting later this month to +1.0% Y/Y or higher. The piece echoes source reports circulated by several media outlets last week.
• Speaking with Fuji TV on Sunday, PM Kishida hinted that he was in no rush to tighten the national law on infectious diseases, triggering speculation that he might want to avoid controversies ahead of the upcoming triennial House of Councillors election. He also said that he would make a decision on whether to maintain strict border controls as soon as this week.
• Wednesday's publication of monthly BoP current account balance and Eco Watchers Survey will kick off this week's data releases. In addition, BoJ Gov Kuroda is set to speak at branch managers' meeting that day.