Limited By Risk-On Start To The Week

USD/JPY has wavered in early trade, last sits -7 pips at Y103.97, with both sides of the pair sitting at/near the bottom of the G10 scoreboard amid a broader risk-on feel. The U.S. emergency approval of the Pfizer Covid-19 vaccine (and potential launch of vaccine deliveries from Monday), the drafting of a bipartisan fiscal stimulus package to be presented in the U.S. Congress on Monday (albeit there is no guarantee it will be passed) and another extension to the Brexit talks deadline have conspired to generate a risk-on impetus at the start to the week.

• Locally, NHK reported that the Japanese gov't considers excluding Tokyo and Nagoya from its "Go To" travel campaign and will hold a meeting on the matter today. It also plans to keep Osaka out of the programme and is set to discuss whether to extend the exclusion of Sapporo. Per the Nikkei, any suspension/extension would last about two weeks.
• In a separate report, NHK noted that the Tokyo metropolitan gov't plans to ask stores to keep reduced opening hours through Jan 11. The stores have previously been asked to reduce opening hours until Dec 17.
• Bears look for losses past Nov 18 low of Y103.65, before taking aim at key support from Nov 6/Mar 12 lows of Y103.18/09. Bulls would be pleased by a move through Nov 4 high of Y104.76, which would open up the 76.4% retracement of the Nov 11 - 18 sell-off at Y105.20.
• Japanese Tankan Survey hits the wires shortly, with final industrial output coming up later in the day. Looking further afield, trade balance & flash Jibun Bank PMIs (Wednesday) as well as CPi & BoJ MonPol decision (Friday) will provide interest this week.