Tokyo Scrambles To Contain Virus Spread

USD/JPY popped higher and last trades at Y103.29, 9 pips better off. E-minis are marginally mixed as we type, while JPY struggles against all of its G10 peers.

• The weekend saw Tokyo Gov Koike & govs of three neighbouring prefectures urge central authorities to declare a state of emergency in the area to stop the spread of new Covid-19 infections, but the central gov't said it will consult experts before making a decision.
• The Nikkei reported, without attribution, that PM Suga will hold a presser today to explain measures taken by his gov't to contain the spread of the virus. Per Jiji, the gov't mulls changing the legislation on virus management to allow for penalising businesses that don't comply with requests for early closures. A report by NHK noted that the gov't considers declaring a state of emergency, which would be more limited than April's.
• Bulls look to take out Dec 28 high of Y103.90 before taking aim at Y104.28, the high print of Dec 11. Bears look for a dip through Dec 30 low of Y102.96, before targeting Dec 17 low & bear trigger at Y102.88.
• Looking ahead, final Japanese M'fing PMI hits today, cash earnings figures come out Thursday, household spending is due Friday.