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Yen Tad Weaker, Kuroda To Address Lawmakers Again

JPY

USD/JPY last deals at Y127.24, up 13 pips on the day, after holding a familiar range after hours Friday. Sentiment is mildly positive, with U.S. e-mini futures sitting in the green, as Shanghai & Beijing unveiled plans to further relax their COVID-19 restrictions.

  • For bears, the initial target is provided by May 24 low of Y126.36. A break here would clear the way to the 50-EMA at Y126.09. Conversely, a rebound above May 17 high of Y129.78 would allow bulls to set their sights on May 9 high of Y131.35.
  • Jiji reported that Japan's government has drawn up a draft design and "action plan" pertaining to PM Kishida's "new capitalism" initiative, which includes skill development and education support for around 1mn workers. The plan will be further discussed in government circles and is expected to win Cabinet approval next month.
  • Japan's data releases will pick up tomorrow, with little of note coming up today. The local docket includes unemployment, retail sales & industrial output (Tuesday) as well as capex & company profits/sales (Wednesday).
  • While the local data docket is light today, BoJ Gov Kuroda will appear in the Diet this morning.

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