Suga Leaves For DC, Viability Of Olympics Questioned

USD/JPY extended its losing streak to four straight days Thursday, with the yen resilient despite Gotobi day flows and positive risk sentiment.

• The latest MNI POLICY piece noted that the BoJ sees no need to further reduce the scale of its JGB purchases at present. Elsewhere, a snr BoJ off'l downplayed suggestions that China's digital yuan could take over as the main reserve currency.
• The resurgence of Covid-19 infections has cast doubt on Japan's ability to hold the Tokyo Olympics less than 100 days before the games commence. LDP SecGen Nikai told TBS that cancelling the event remains an option, even as Chief Cabinet Sec Kato insisted that the gov't wants to press ahead with preparations for the Olympics.
• The has rate edged lower and last sits at Y108.71. Losses past Apr 15 low of Y108.61 would clear the way to Mar 23 & key near-term support at Y108.41. On the flip side, a jump above Apr 9 high of Y109.96 would expose Apr 6 high of Y110.55.
• Japan's economic calendar is virtually empty today. Focus falls on PM Suga's visit to the White House. His talks with U.S. Pres Biden are expected to be China-centric, ranging from geopolitics to human rights issues.
• Next week's docket features trade balance & final industrial output (Monday), final machine tool orders (Tuesday) as well as national CPI & flash Jibun Bank PMIs (Friday).