Yen Gets Battered Monday By Recovery In Risk Appetite

USD/JPY whip-sawed Monday, finishing slightly above neutral levels. The rate slid in Asia-Pac hours, with the yen bolstered by losses in regional equity benchmarks, but the downswing proved temporary. USD/JPY recovered into the WMR fix amid improvement in broader sentiment and firmer commodity prices, which took their toll on the yen.

• Japan officially capped the number of spectators at the Olympic events at 10,000 or 50% of venue capacity (whichever is smaller). Meanwhile, the local media reported that the organisers of the games will allow alcohol sales at stadiums.
• Final machine tool orders will be published later today. Looking further afield, flash Jibun Bank PMIs are due tomorrow, with Tokyo CPI coming up Friday. Elsewhere, the minutes from the BoJ's Apr MonPol meeting are due Wednesday, while BoJ Gov Kuroda will speak on Thursday.
• USD/JPY last seen at Y110.33, 6 pips higher on the day. Bulls look for a move through Jun 17 high of Y110.82, which would open up Mar 31 high at Y110.97, a key near-term resistance. Bears need a fall through yesterday's low of Y109.72, before taking aim at the 50-DMA/Jun 7 low at Y109.21/19.