JPY Awaits Policy Speech From PM Suga

USD/JPY has fluctuated within a tight range thus far, unable to garner any clear impetus from the risk-off developments reported over the weekend. It last trades flat at Y104.70, with participants awaiting a major policy speech from PM Suga, as Japan's parliament convenes for a special session.

• Local media have circulated some of the main points PM Suga is expected to make during his address. NHK reported that he is set to reiterate his core pledges, including cutting mobile phone bills and promoting digitalisation. He is also expected to commit to achieving carbon neutrality by 2050.
• Mainichi reported that PM Suga is mulling ordering an extra budget worth >Y10tn for stimulus measures, possibly as soon as early next month. It would be funded by unspent money from the previous extra budget and new JGB issuance.
• A fall through Oct 21 low of Y104.34 is needed to expose Sep 21 & bear trigger located at the round figure of Y104.00. Bulls look for a rally past Y105.04, the low of Oct 4, before attempting a move at Oct21 high/50-DMA at Y105.53/58.
• Japanese data highlights this week include retail sales (Thursday) as well as Tokyo CPI, unemployment and flash industrial output (Friday). On Thursday, the BoJ will deliver its monetary policy decision.