Yen Falters Thursday, Japan To Release Recalculated CPI After Base Revision

Japan is set to report monthly earnings & spending data today, but the main focus on the data front will likely fall on revised inflation data. Statistical authorities will unveil updated recent inflation figures, which have been recalculated using the newly reshuffled consumer-price basket.

• The so called "base revision" occurs every five years to account for changing consumption structure in the Japanese society. The expected increase in the weighting of smartphones and telecommunication costs may provide a downward drag on inflation, as bringing down cellphone charges was one of PM Suga's flagship policy initiatives.
• Meanwhile, Tokyo declared a record 5,042 new Covid-19 infections on Thursday. Governor Koike confirmed that the metropolitan govt' will act in line with the recent announcement from central authorities and will prioritise the hospitalisation of severely ill or vulnerable Covid-19 patients over those with mild or no symptoms. PM Suga said that the gov't is not thinking of declaring a nationwide state of emergency.
• USD/JPY last trades flat at Y109.79 after yesterday's upswing, driven by marginally firmer risk appetite and, possibly, Gotobi day flows. Bulls now look for a break above Jul 23 high of Y110.59, which would shift focus to Jul 14 high of Y110.70. Bears need a fall through Aug 4 low of Y108.72 to gain some impetus.