The yen has faced light selling pressure on Japan's return from a three-day weekend and USD/JPY last trades +24 pips at Y143.55. Reminder that BoJ Gov Kuroda will speak at 2:30pm JST and hold a presser at 4:30pm JST. We don't expect BoJ chief to provide much in the way of fresh information given the proximity to last week’s BoJ decision and post-meeting communique.
- BoJ Rinban operations will provide some interest today, with local bond markets set to re-open. The yield on 10-Year JGBs pulled back from the 0.25% cap when the BoJ reaffirmed its dovish credentials last Thursday.
- The latest batch of flash Jibun Bank PMIs headlines the domestic data docket today. Later this week, focus will turn to Friday's data dump, which will include unemployment, retail sales & industrial output.
- Leveraged funds reduced net JPY shorts by 20,147 contracts to -26,208 in the week through Sep 20, according to the latest update from CFTC. Asset managers boosted net-short positions by 2,720 contracts to -79,761. Both categories of participants remain bearish on the yen.
- U.S. e-minis are slightly softer at typing, Nikkei 225 futures point to a weaker open in the wake of last week's risk rout.
- Risk reversals are heavy this morning, one-month option skews last indicate the largest preference for yen calls since Jul 13.
- Sep 22 high/2.764 proj of the Aug 2 - 8 - 11 price swing provide the initial layer of resistance at Y145.90/146.03. Bears look for a retreat past Sep 22 low of Y140.36.