State Of Emergency

USD/JPY ground lower still on Thursday, extending its current losing streak to four straight days. It crept higher in European hours, before sliding in the NY session as BBG reported that U.S. Pres Biden wants to "propose almost doubling the capital tax rate for wealthy individuals." USD/JPY seems poised for its third weekly loss in a row.

• The gov't formally recommended declaring a "short and powerful" state of emergency in Tokyo, Kyoto, Hyogo and Osaka from Apr 25 to May 11 this morning. Econ Min Nishimura noted that the emergency declarations would entail holding certain events without spectators, shutting eateries serving alcohol, and asking residents to stay at home.
• Japan's government maintained its overall assessment of the economy in its latest monthly report. The gov't upped its assessment of capex, while lowering its view on public spending.
• Japan's CPI report & flash Jibun Bank PMIs will be released later today.
• The BoJ deliver their latest monetary policy decision & outlook report next Tuesday, with a presser with Gov Kuroda due after the announcement.
• Also due next week are retail sales (Wednesday) as well as Tokyo CPI, unemployment, flash industrial output, housing starts & final Jibun Bank M'fing PMI (Friday).
• USD/JPY last trades at Y107.99, little changed on the day. A break under trendline support at Y107.77 would shift bearish focus to Mar 4 low of Y106.97. Bulls eye the 20-EMA at Y108.76 for initial resistance.