Forex Asia Market Update - JPY

PM Koizumi is visiting the Yasukuni Shrine today but his visit is unlikely to trigger a further deterioration in China-Japan relation since his term ends in September.

More important will be the attitude of Koizumi's replacement to the controversial shrine. Shinzo Abe is the clear favourite to win the presidential elections in September, and his communication on policy suggests that he will also continue to visit the shrine as PM.

The BOJ will release minutes to July 13, 14 board meeting, where the BOJ opted to end ZIRP. The minutes are unlikely to be market moving since many BOJ board members have already discussed their views with the market since then.

Neutral on JPY for now as its said that the currency is still being used for short-term financing and geo-political tensions surrounding Iran will keep oil elevated for now.