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Political Headlines, Covid Developments Under Scrutiny, Data Deluge Eyed

JPY

Firmer U.S. Tsy yields pushed USD/JPY higher Tuesday amid broad-based greenback strength. The rate last sits at Y110.30, just shy of yesterday's high, with bulls looking to a move through Sep 1/Aug 13 highs of Y110.42/46, which would open up Aug 11/Jul 7 highs of Y110.80/82. Conversely, bears need a fall through Aug 24 low of Y109.41 before targeting Aug 16 low of Y109.11.

  • LDP leadership race remains in the spotlight, albeit the latest headline flow surrounding the matter included little in the way of market moving updates. It is worth noting that Japan reportedly considers calling a parliamentary session for Oct 4 to choose the next Premier.
  • Asahi reported that Japan is preparing to extend emergency declarations in areas including Tokyo through the end of the month, the decision could be announced on Thursday. According to Yomiuri, Japan looks to gradually ease restrictions from Oct.
  • Japan's data docket is tightly packed today, with final Q2 GDP, Jul BoP current account balance and Aug Eco Watchers Survey all due.

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