USD/JPY Falters Amid Broader Greenback Sales

USD/JPY whip-sawed Monday, but finished lower thanks to a broader dollar weakness, linked to easing concerns about inflation risks. The rate bounced in the London morning, but failed to make headway beyond neutral levels and retreated into the WMR fix.

• BoJ Gov Kuroda said Monday that the global economy is starting to see the light at the end of pandemic tunnel, but the shape of post-pandemic economy remains unclear.
• According to Yomiuri, Japan will extend the period of zero-interest loan programme.
• Jiji circulated a piece noting that last Friday a group of "LDP heavyweights such as ex-PM Abe" launched a new parliamentary group, in an apparent attempt to counter the rise of party SecGen Toshihiro Nikai.
• Final machine tool orders headline the local data docket today, with unemployment & Tokyo CPI coming up on Friday.
• USD/JPY last trades at Y108.79, just above neutral levels, and it is worth reminding that it is a Gotobi Day today. A break above May 13 high of Y109.79 would clear the way to Apr 9 high of Y109.96. Conversely, a fall through May 7 low of Y108.34 would bring Apr 23 & bear trigger at Y107.48 into view.