Suga Interviews Under Scrutiny

USD/JPY has hugged a tight 10 pip range thus far, with e-minis ticking away from worst levels after a lower open. The rate operates just shy of its 50-DMA, after trying and failing to close above the level last Thursday and Friday. It last sits +6 pips at Y106.30.

• Per the latest Yomiuri poll, approval for the Japanese Cabinet rose 15pp to 52% and is higher than the disapproval rating for the first time since Mar. The jump in support coincides with the announcement of PM Abe's imminent departure, with Chief Cabinet Sec Suga being the frontrunner to replace him.
• Suga spoke with the Nikkei over the weekend, reaffirming his support for BoJ Gov Kuroda and the central bank's policies under his tenure. He also told Mainichi that he is against any cuts to the consumption tax.
• Elsewhere, LDP General Council chief Suzuki said that the next PM might dissolve the lower house and a snap election. Given the aforementioned increase in approval ratings, this could allow the LDP to boost its presence in Japan's legislature.
• Bulls look to take out the 50-DMA/Sep 3 high at Y106.41/55 before targeting Aug 28 high of Y106.95. Meanwhile, a fall through Aug 28 low of Y105.20 would expose Aug 19 low of Y105.10.
• The latest Eco Watchers Survey is due later today.
• Japanese calendar this week features a very busy Tuesday, with earnings/spending data, final GDP, BoP current account balance coming up that day. Flash machine tool orders are due Wednesday, core machine orders hit on Thursday, while PPI & BSI Survey come out on Friiday.