Tokyo Covid Count Dips Below 1,000 But Most Prefecture Capitals Fear Medical Staff Shortages

USD/JPY rangebound in early Asia-Pac trade, last trades flat at Y103.78. E-minis have firmed up a tad, Nikkei 225 futures also point to a (slightly) higher open.

• U.S. Defence Sec Austin spoke by phone with his Japanese counterpart Kishi, reaffirming the White House's commitment to fulfil U.S. obligations under Art 5 of the bilateral security treaty and defend Japan if it comes under attack. The two officials agreed that the mechanism applies to East China Sea islands claimed by China.
• Tokyo Covid-19 case count fell below 1,000 for the first time in 12 days. Meanwhile, a Kyodo survey saw 80% of prefectural capitals raise concerns over shortages of medical staff needed for Covid-19 vaccinations.
• The approval for PM Suga's cabinet continued to decline, per the latest Asahi poll. The rating dropped 6pp to 33%.
• A break above channel top at Y104.06 would turn focus to Jan 11 high of Y104.40. Conversely, a dip through Jan 21 low/61.8% retracement of the Jan 6 - 11 rally at Y103.33/28 would open up the 76.4% Fibo support at Y103.02.
• Focus turns to Japanese retail sales (Thursday) as well as Tokyo CPI, unemployment & flash industrial output (Friday).