Kuroda To Address Lawmakers

USD/JPY was sold Tuesday, mostly on the back of broader greenback weakness, as concerns over hawkish Fed receded. The pair extended its losing streak to three days in a row.

• The rate last operates at Y114.67, a touch lower on the day. Initial downside focus falls on Jan 27 low of Y114.48 and a break here would expose Jan 14/24 low of Y113.49/47. Bulls look for a break above the 76.4% retracement of the Jan 4 - 24 downleg/Jan 28 high at Y115.67/68 before targeting Jan 4 high of Y116.35.
• The tug of war over Covid-19 response continues, as the central gov't keeps playing down the need for a fresh nationwide emergency declaration, even as a number of prefectural governors have expressed concerns over a surge in Omicron infections. Asahi reported yesterday that the Tokyo Metropolitan Gov't was preparing guidelines for seeking a state of emergency, with hospital bed occupancy rate reaching alarming levels. Elsewhere, Jiji sources said that the western prefecture of Wakayama will be placed under a state of "pre-emergency," possibly as soon as on Thursday. Meanwhile,
• An address from BoJ Gov Kuroda takes focus today.