Yen Stabilises After Rally, Household Spending Posts First Monthly Growth Since March

USD/JPY tumbled Thursday and the yen was the only G10 currency to outperform the USD. That being said, the rate remained trapped within this week's range.

• Japan's household spending fell 1.9% Y/Y in September, but losses were less pronounced than expected. Consensus was looking for a 3.5% decline, following a 3.0% fall in August. On a monthly basis, spending rose 5.0% from August, registering its first gain in five months.
• The data came out after Yomiuri reported that the gov't plans to implement a Y100,000 cash handout scheme targeting all under 18s and give Y30,000 in points to all holders of "My Number" cards in a bid to stimulate consumption.
• Looking into next week's docket, the BoJ will release the summary of opinions from their Oct policy meeting on Monday. Japan's earnings data, BoP current account balance & Eco Watchers Survey will hit the wires on Tuesday.
• USD/JPY sits at Y113.75, unchanged on the day. Should bears force a break below Y113.26, which limited losses on Oct 28, they could take aim at Oct 12 low of Y113.00. Bulls see Oct 20, 2021/Nov 6, 2017 highs of Y114.70/73 as their initial targets and a break here would expose Mar 10, 2017 high of Y115.51.