USD/JPY Consolidates Monday's Losses

USD/JPY pushed lower yesterday, with liquidity thinned by a holiday in the U.S., even as U.S. equity benchmarks advanced. Despite starting on the front foot, as USD picked up a bid on the back of yuan weakness, the pair ebbed lower through the rest of the day, before stabilising after the WMR fix.

• Little of note in the latest address from BoJ Gov Kuroda.
• Japanese press suggested that a trilateral summit between Japan, South Korea and China probably won't be held this year. Kyodo cited diplomatic sources as noting that Tokyo informed Seoul that PM Suga will not attend the event before progress is made over the bilateral spat over wartime labour compensation.
• USD/JPY trades at Y105.34, virtually unchanged on the day. A dip through Oct 5 low of Y105.28 would allow bears to take aim at Y104.94, the low of Oct 2 and a key near-term support. Bulls look to take out Oct 12 high of Y105.85 before targeting Oct 7 high of Y106.11.
• Japanese industrial output, due Wednesday, takes focus from here.