Trade Data Eyed, USD/JPY Hovers Just Above One-Month Low

USD/JPY ground lower Wednesday amid broad-based greenback sales. The rate fell to its worst levels on a month as a result, before ticking away from there. It last sits at Y109.33, marginally below neutral levels. Bears look for a slide under Aug 16 low of Y109.11, which limited losses yesterday. A break here would open up the bear trigger at Y108.72, which represents the low print of Aug 4. Bulls need a rebound above Sep 8/Aug 13 highs of Y110.45/46 before targeting Aug 11/Jul 7 highs of Y110.80/82.

• Bloomberg circulated the results of a survey in which all but one of 47 economists said that the new Japanese PM is unlikely to change tack on fiscal and other policies sufficiently to force the BoJ to change its monetary policy settings.
• Central bank chief Kuroda spoke yesterday but revealed nothing new. He noted that the BoJ will continue to buy corporate bonds, including green bonds.
• Japan's unadjusted trade surplus is expected to have narrowed to just Y2.9bn in August from Y439.4bn recorded in July. The data will hit the wires within half an hour.
• Meanwhile, fresh headlines re: LDP leadership race may trickle through as party factions continue their meetings and backdoor negotiations, before official campaigning kicks off on Friday.
• The Ishihara faction is set to confirm waiving discipline in the vote, while 10 members of the Nikai faction reportedly told its leader that they intend to back Taro Kono. As expected, Shigeru Ishiba resigned from running and threw his weight behind Kono, but allowed members of his faction to vote as they please.