USD/JPY Snaps Four-Day Losing Streak After Post-FOMC Bounce

USD/JPY whip-sawed Wednesday, but finished the day in the green. It took a hit in European hours as risk appetite turned sour, crude oil slid, while cryptocurrencies registered wild swings. The rate bounced after the WMR fix, accelerating gains as the minutes from the FOMC's latest MonPol meeting suggested that some policymakers were open to a taper debate at "upcoming meetings," provided that the economy "continued to make rapid progress."

• Okinawa asked the central gov't to be added to the list of areas under the Covid-19 state of emergency Wednesday amid continued spread of new infections, with Gov Tamaki expressing concern with faster transmission rates of new variants.
• Meanwhile, Health Ministry data confirmed that about 29% of people entering Japan and subject to mandatory quarantine failed to declare their location via a dedicated smartphone app, while 20% did not report their health condition.
• Jiji reported that the IOC wants to hear Japan's decision on holding the Tokyo Olympics by the end of June.
• Japanese monthly trade report & core machine orders are due today, before focus moves to Friday's CPI & flash Jibun Bank PMIs.
• USD/JPY last sits at Y109.21, little changed on the day. A break above May 13 high of Y109.79 would bring Apr 9 high of Y109.96 into play. Conversely, losses past May 7 low of Y108.34, a key near-term support, would open up Apr 23 low of Y107.48.