Japanese Economy Returns To Growth

USD/JPY see-sawed Monday as the Russia-Ukraine standoff continued to inspire market volatility, eking out some modest gains at the end of the day. The rate trades -8 pips at Y115.46, with bears looking for a dip through yesterday's low of Y115.01 before targeting Feb 2 low of Y114.16. Bulls need a break above Feb 10/Jan 4 highs of Y116.34/35 to see a resumption of the uptrend.

• Japan's economy grew 5.4% Q/Q in Q4 aided by better than forecast consumer spending, preliminary data showed. Expansion was slower than expected (+6.0% Q/Q) but the previous reading was revised to -2.7% from -3.6%.
• Final industrial output data will hit the wires later today. Looking further afield, trade balance and CPI will hit the wires on Thursday and Friday respectively.
• Osaka Governor Yoshimura said Monday that he will refrain from asking the central government to impose a state of emergency in the city as Covid-19 cases appear to be peaking, albeit he expects that quasi-emergency (due to expire Sunday) will be extended. NHK reported that virus countermeasures could be extended in Osaka and some other prefectures.
• Worth noting that BoJ Gov Kuroda speaks as we type.