Yen Steady After Tuesday Upswing, Public Reception Of Kishida Cabinet Worries LDP

USD/JPY snapped its three-day losing streak Tuesday as recovery in risk appetite dented demand for safe haven currencies. The rate has held a right range this morning and last operates at Y111.50.

• Bulls look to an upswing past Sep 30 high of Y112.08, which would bring Feb 20, 2020 high of Y112.23 into play. On the flip side, a retreat past Aug 11 high of Y110.80 would open up Y109.11, which limited losses on Aug 16 & Sep 15.
• The initial round of approval ratings for the Kishida Cabinet proved disappointing for LDP officials, with the new administration starting from a relatively low base compared to previous governments (albeit an uptick from final support levels of the Suga Cabinet was evident). Some have suggested that the low starting point in the polls boosts the chances of a larger round of fiscal stimulus in the wake of the upcoming general election.
• Looking ahead, BoJ Gov Kuroda will speak at the branch managers' meeting on Thursday. Focus on the data front moves to Japan's earnings/spending data, BoP current account balance & Eco Watchers Survey, due for release Friday.