ASIA: Coming Up in Asia Today

USD/JPY tracks under 152.00 in early Wednesday dealings, after posting a modest gain for Tuesday's session. Bullish technical conditions persist, with the recent correction lower considered corrective for now. The next important support lies at 149.72, the 20-day EMA. On the upside, clearance of last Friday’s 153.27 high, would resume the uptrend and open 154.39, a Fibonacci retracement point. 

• This backdrop didn't shift as Tuesday's session unfolded, with focus elsewhere, as EUR recovered some ground, while AUD/USD moved up from lows as the USTR said US-China talks were still continuing. AUD/JPY is near 98.40 in latest dealings, remaining supported on dips sub 98.00 for now.
• Despite the bullish technical set up, more broadly, USD/JPY looks too high relative to US-JP yield differentials, see the chart below. Fed Chair Powell largely maintained status quo in terms of signaling another 25bp rate cut at the end of October, without a significant market reaction. Intervention risks also lurk in the background for USD/JPY.
• Some offset is coming from continued domestic political uncertainty. The chairpersons of the House of Councillors' Diet Affairs Committees from the governing Liberal Democratic Party (LDP) and main opposition Constitutional Democratic Party (CDP) met yesterday and agreed on the convening of an extraordinary session of the National Diet on 21 October (likely to elect a new PM). LDP leader Takaichi is seeking meetings with the three main opposition parties today (see this link).
• On the data front today we have Aug final IP, while a 20yr debt auction is in focus on the JGB side.
• In the option expiry space, note the following for NY cut later: Y143.00($1.8bln), Y150.00($1.1bln), Y151.55($956mln), Y151.95-00($500mln). 

Fig 1: USD/JPY Versus US-JP Yield Differentials 

Source: Bloomberg Finance L.P./MNI 

• Bank of Korea to Sell KRW700bn 1-Year Bonds
• Vietnam To Sell VND 0.5Tln 2055 Bonds; (TD2555052)
• Vietnam To Sell VND 1.5Tln 2040 Bonds; (TD2540037)
• Vietnam To Sell VND 8.0Tln 2035 Bonds; (TD2535024)
• Vietnam To Sell VND 3.0Tln 2030 Bonds; (TD2530010)
• Thailand to Sell THB30bn of New 2029 Bonds
• Bank Indonesia to Sell 95D SUVBI Bills
• Bank Indonesia to Sell 367D SUVBI Bills
• Bank Indonesia to Sell 182D SUVBI Bills
• Bank Indonesia to Sell 31D SUVBI Bills
• Bank Indonesia to Sell 273D SUVBI Bills
• Thailand to Sell THB15bn of 2040 Bonds
• Singapore to Sell S$5.8 Billion 364-Day Bills
• India to Sell INR60bn  364-Day Bills
• India to Sell INR70bn  91-Day Bills
• India to Sell INR60bn  182-Day Bills 

source:  Bloomberg Finance LP /  MNI