Yen Slips In Early Trade, Kishida To Speak In Parliament

USD/JPY trades at Y144.86, a dozen pips higher as we type, with participants awaiting Japan's Tankan Survey, insights on the BoJ's most recent monetary policy meeting and PM Kishida's policy speech.

• Buying pressure has been capped by Y145.00 since Japanese intervened in FX markets on Sep 22 when the pair breached that figure. Heightened intervention risk may help weaken appreciation pressure, should it materialise afresh.
• U.S./Japan yield spreads continued to widen last Friday. 2-Year differential increased 9.2bp, while 10-Year gap rose 5.4b.
• The Nikkei 225 futures point to a weaker open after Wall Street benchmarks softened on Friday.
• Bulls look to mount a challenge to the Y145.00 figure before setting their sights on Sep 22 high/2.764 proj of the Aug 2 - 8 - 11 price swing at Y145.90/146.03. Bears look for losses past Sep 22 low of Y140.36.
• Looking ahead, the latest set of Tokyo CPI readings is due Tuesday, BoJ Gov Kuroda speaks Thursday, while earnings/spending data will hit Friday.