Japanese Yen Rises On Virus Woes

The Japanese yen climbed against its most major counterparts in the Asian session on Monday, as concerns over rising coronavirus cases across the region outweighed optimism over economic recovery.

Australia's largest city, Sydney, moved to a two-week lockdown on Saturday due to concerns over the Delta variant virus cases.

Japanese Prime Minister Yoshihide Suga said that the government is on high alert following a flare-up of infections in the Tokyo region.

Malaysia will extend a lockdown that was set to expire today.

Thailand imposed tough lockdown measures in the capital Bangkok and other provinces as the current curbs were unable to prevent the spread of the coronavirus.

China's industrial profits slowed again in May due to high base effects and increases in the costs of production.

China's official factory activity data is due on Wednesday. The reading is forecast to slow to 50.8 from 51.

The yen spiked up to a 6-day high of 131.90 against the euro, 5-day highs of 120.41 against the franc and 83.85 against the aussie, after falling to 132.35, 120.90 and 84.16, respectively. The yen may locate resistance around 127.5 against the euro, 115.5 against the franc and 82.00 against the aussie.

The yen gained to 110.62 against the greenback and a session's high of 89.88 against the loonie, off its prior lows of 110.87 and 90.16, respectively. The yen is likely to locate resistance around 108.00 against the greenback and 86.00 against the loonie.

In contrast, the yen reversed from an early 4-day high of 78.17 against the kiwi, with the pair trading at 78.35. On the downside, 80.00 is possibly seen as its next support level.

The yen declined to 154.22 against the pound, from its Asian session's 6-day high of 153.59. Next likely support for the currency is seen around the 157.00 level.