USD/JPY Recoups More Of Last Week's Sharp Losses

Yen was the weakest performer in the G10 space for Monday's session. The currency lost a around 0.85%. We sit near 146.20 in early Tuesday Asia Pac dealings, off intra-day highs from Monday of 146.59.

• The saw the pair further erase last week's sharp sell-off on Bloomberg headlines citing sources that said the BoJ see little need to reverse negative interest rate policy at next week's policy meeting.
• The latest recovery - for now - appears to be a correction. Key short-term resistance to watch is 147.32, the Dec 7 high, a break of which would undermine the bearish theme.
• Cross asset moves were mixed, with US yields firmer at the back end for Monday's session, but finished well off intra-session highs. Equity indices rose modestly in EU/US markets.
• Locally on the data front today we have the Nov PPI due. The market expects a 0.2% m/m reading (prior -0.4%), while for y/y the print is expected at 0.1% (prior 0.8%).
• Note the following option expiries for NY cut later Tuesday: Y145.35-50($879mln), Y148.00($575mln).
• Approval ratings for PM Kishida also continue to fall, hitting a new low of 23% according to a NHK poll (see this BBG link).