USD/JPY Wavers Within Familiar Range, Capped By 50-DMA

USD/JPY wavered yesterday as participants digested the ECB's monetary policy decision and a renewed sell-off at Wall Street. The rate bottomed out just under the Y106.00 mark after ECB Pres Lagarde noted that EZ policymakers do not target the exchange rate, while the tech sector led U.S. equity benchmarks lower. The rate tested its 50-DMA, but failed to breach the figure, which continues to lure bulls.

• Japan's Chief Cabinet Sec Suga appeared on TV on Thursday, pointing to a need to further increase the sales tax after an administrative reform is completed. Suga is the leading candidate to replace Shinzo Abe as Japan's PM.
• NHK reported that PM Abe will issue a statement on national security today.
• As anticipated, Tokyo's coronavirus alert level has been lowered by one notch.
• The rate trades flat at Y106.13 as we type. A move through the 50-DMA at Y106.29 would allow bulls to take aim at Sep 3 high of Y106.55 Conversely, a fall through Sep 9 low of Y105.80 would prompt bears to target Aug 28/19 lows of Y105.20/10.
• Japan's PPI and BSI Survey are due later today.
• Looking further afield, final industrial output is due Monday, trade balance comes out Wednesday, CPI hits next Friday. The BoJ delivers its latest MonPol decision on Thursday.