Yen Leads Gains Monday, Tokyo Virus Situation Monitored

USD/JPY whip-sawed Monday, but a slide into the first WMR fix of the week allowed it to finish the day on the back foot. The rate extended its losing streak to three straight sessions, as the yen outperformed its G10 peers.

• In conversation with the Hudson Institute, Japan's top defence off'l outlined threats from China and said that "we are not friends of Taiwan, we are brothers".
• PM Suga said Monday that the gov't remains on alert amid an uptick in new Covid-19 infections in the capital.
• Kyodo reported that Japan will implement stricter rules for Olympic athletes coming from countries hit by the highly transmissible Delta variant of the coronavirus.
• Japan's unemployment & retail sales headline the local docket today. Flash industrial output takes focus tomorrow, while Tankan survey & final Jibun Bank M'fing PMI come out Thursday.
• USD/JPY last sits at Y110.60, just shy of neutral levels. A fall through Jun 21 low of Y109.72 would open up the 50-DMA at Y109.44. On the topside, focus falls on Jun 24 high of Y111.12, followed by Mar 26,2020 high of Y111.30.