USD/JPY Testing Friday's Lows, Onshore Markets Closed Today

Japan markets are closed today for a public holiday. This, coupled with the UK holiday this evening (due to the Queen's funeral) could limit activity during today's session. To recap, yen outperformed on Friday's session (+0.42%).

• USD/JPY currently sits close to 143.80, with yen firming after an earlier spike above 143.00 couldn't be sustained. We aren't too far away from support levels from late last week, with 142.50 eyed next. Beyond that, dips sub 142.00 were supported early last week.
• Tomorrow the data calendar delivers the national CPI, which is expected to show further headline/core gains (2.9% y/y forecast for headline, versus 2.6% previously).
• The bigger focus will rest on the BoJ policy meeting (this Thursday), where no broad changes in policy settings are expected at this stage.
• Current USD/JPY levels look a little low relative to US yields, but some concern around intervention risks may be driving some cautiousness in the market. This theme could come into play later in the week given the Fed policy meeting on Wednesday.