Tokyo Moves Closer To Tighter Covid Restrictions

USD/JPY printed fresh monthly lows Wednesday, but ticked away from there and finished in positive territory, in what was largely a sideways drift.

• Tokyo may be headed for tighter Covid-19 restrictions. Gov Koike said she will make the decision on whether to file a formal request after discussing the matter with experts. Sankei reported that Japan eyed moving ahead with tightening restrictions in Tokyo as well as other areas.
• As a reminder, on Wednesday Osaka declared local medical emergency, following a record spike in new Covid-19 infections, with Gov Yoshimura warning against "a danger that the medical system will collapse."
• On a different front, Yomiuri reported that the gov't plans to release treated water from the Fukushima nuclear plant into the sea, but the final decision will be taken next week.
• Elsewhere, FinMin Aso publicly backed U.S. Tsy Sec Yellen's call for the harmonisation of minimum corporate taxes among major economies and said that G20 nations' stance on FX markets remains the same.
• The rate last sits at Y109.85, virtually unchanged on the day. A slide past the 20-EMA at Y109.41 would shift bearish focus to Mar 26 low of Y109.13. On the flip side, a break above Mar 31 high of Y110.97 would reignite bullish impetus.
• Japanese BoP data, consumer confidence & Eco Watchers Survey hit the wires today.