USD/JPY Rebounds, Busy Data Day On Tap, Headlined By June Labor Earnings

The yen was the weakest performer in the G10 space for Monday's session, losing just over 0.50%. Post the Asia close the pair was mostly supported, apart from a brief dip sub 142.00. We currently track close to highs from the NY session, around the 142.50 level. Lows yesterday were close to 141.50.

• In terms of FX technicals, attention is on resistance at 144.20, the Jul 7 high. Clearance of this level would open key resistance and the bull trigger at 145.07, the Jun 30 high. Moving average studies are in a bull mode condition highlighting current positive market sentiment. On the downside, initial support to watch lies at 141.48, the 20-day EMA.
• The yen was weighed by the recovery in US yields, which were firmer across most parts of the curve via a steepening trend. The 10yr outright yield rebounding 5.5bps to 4.09%. The equity tone in US markets was also better (SPX +0.90%), leaving yen weaker against the likes of AUD and NZD.
• The local data calendar is busy today, with labor cash earnings for June up first. The market expects real earnings at -0.9% y/y (prior -0.9%), nominal earnings at 3.0% y/y (prior 2.9%) and household spending at -3.8% y/y (prior -4.0%). After that we get June BoP and trade balance figures, along with July banking lending. Later on, the Eco Watchers Survey is on tap.