Yen Weakness Persists

USD/JPY charted a Doji candlestick on Tuesday as the escalation in official verbal warnings surrounding sharp yen depreciation provided only brief respite to the currency. The rate quickly clawed back losses registered after FinMin Suzuki noted that the government monitors FX market developments "with a sense of vigilance" and advanced towards a multi-year high printed on Monday. The release of U.S. CPI data, which included a slight miss in core inflation, resulted in a fresh round of USD/JPY sales, but the rate recovered into the close.

• The rate has added 11 pips thus far and last operates at Y125.49. Bulls continue to dominate, with initial topside focus falling on Jun 5, 2015 high of Y125.86. A break here would clear the way to May 17, 2002 high of Y128.15. On the flip side, bears look for a retreat towards Apr 6 & 7 lows of Y123.47.
• Diplomatic sources told Kyodo that the White House is eyeing a presidential visit to Japan on May 22. President Biden would hold talks with PM Kishida before a summit of the Quad alliance that also includes India and Australia.
• Core machine orders headline the local data docket today. Elsewhere, BoJ Gov Kuroda will speak at the Trust Companies Assembly.