Local Covid-19 Outbreak Under Scrutiny, Most Dissatisfied By Gov't Response

USD/JPY has shed a handful of pips, extending last week's three-day losing streak, as the greenback underperforms following early uptick in crude oil. The rate last trades -10 pips at Y108.50.

• Japan's Covid-19 situation remains difficult, with the number of new cases rising past 7,000 for the first time since mid-Jan on Saturday. The Japan Times pointed to anecdotal evidence from Tokyo metropolitan officials, who flagged a spike in calls to the "fever consultation centre," a hotline for citizens without immediate access to healthcare. Officials saw this as a red flag ahead of a potential resurgence in new Covid-19 cases.
• Yomiuri circulated the results of a poll conducted on May 7-9, which showed that 59% of respondents wanted the Tokyo Olympics to be cancelled, with 68% indicating dissatisfaction with the gov't's handling of the Covid-19 outbreak. Meanwhile, recent polling showed a continued slide in approval for PM Suga's cabinet.
• FNN reported that Japan may start distributing Covid-19 jabs to the general public next month in towns which have inoculated their elderly residents.
• Tuesday's household spending is the next point of note on the local data docket. Later in the week, focus moves to BoP current account balance & Eco Watchers Survey, both due Thursday.
• A break under May 7 low of Y108.34 would open up Y107.48, the low print of Apr 23. Conversely, a break above May 3 high of Y109.70 would expose Apr 9 high of Y109.96.