USD/JPY Close To Recovering 38.2% Of Its April Fall

USD/JPY surged Tuesday, punching through its 50-DMA in the process, as the greenback went bid across the board ahead of today's FOMC MonPol decision, while the yen lagged the G10 pack. The rate topped out just shy of the 38.2% recovery of this month's sell-off. The BoJ's monetary policy decision provided no real surprises.

• China pushed back against allegations that it poses a threat to regional security included in Japan's annual diplomatic report. The Nikkei reported that it was the first time such wording was used in the "Blue Book." Beijing accused Japan of "hyping up the China threat, smearing China and interfering in China's domestic affairs." Worth noting that a large UK aircraft carrier strike group will be deployed to Japan for bilateral and multilateral exercises, as geopolitical tensions with China simmer.
• Asahi reported that Japan considers raising Covid subsidies for store closures during the state of emergency.
• The BoJ will unveil its monthly Rinban schedule later today.
• Japan's METI will release March retail sales today, BBG consensus forecast is for a 4.7% annual increase, after a 1.5% fall in February.
• Later in the week, focus turns to Friday's data dump, with unemployment, Tokyo CPI, flash industrial output, final Jibun Bank M'fing PMI, housing starts & consumer confidence all due.