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ASIA

Coming up in the Asia-Pac session on Tuesday:

USDCAD TECHS

Corrective Bounce

AUDUSD TECHS

Bearish Threat Following Friday’s Sell-Off

EURJPY TECHS

Finds Support Below The 50-Day EMA

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The yen trades on a softer footing amid slightly reduced demand for safe havens, as pessimism surrounding the Omicron coronavirus variant has waned somewhat. Top Biden medical advisor Fauci told CNN that "the signals are a bit encouraging" on the severity of symptoms caused by the new variant, adding that he hopes border restrictions would be removed "within a quite reasonable period of time." This modicum of cautious optimism has likely lent support to broader risk appetite at the start to the new week.

  • The decision to tighten border controls may have provided a boost to the approval rating of PM Kishida's Cabinet, the latest Yomiuri poll showed. Support for the Cabinet increased, while 89% of respondents favourably assessed the latest travel restrictions. Parliament will today start a debate on the gov't's response to the Omicron coronavirus variant.
  • NHK reported that the gov't is considering raising the official GDP growth projection for the next fiscal year to account for the impact of the new stimulus package.
  • Participants look ahead to the release of Japan's earnings/spending data (Tuesday), final GDP, BoP current account balance & Eco Watchers Survey (Wednesday) as well as BSI Survey (Thursday).
  • USD/JPY last trades +25 pips at Y113.05 at typing. A clearance of Nov 24 high & bull trigger at Y115.52 is needed to generate some fresh bullish momentum. Bears eye Nov 30 low of Y112.08 for initial support and a break here would expose Sep 30 high ofY112.08 (a recent breakout level).