Kuroda To Appear In Parliament Again

Reduced demand for safe havens undermined the yen Tuesday, as recent rhetoric surrounding the Russia-Ukraine standoff took the edge off geopolitical angst. Intensified diplomatic talks continued, while Russia announced a partial withdrawal of troops from the Ukrainian border (to a somewhat sceptical initial reaction of Western leaders) and reiterated that it has no intention to invade its neighbour.

• USD/JPY operates at Y115.64, little changed on the day, after eking out some modest gains on Tuesday. Bulls see Feb 10/Jan 4 highs of Y116.34/35 as their key near-term target, while bears look for sales past Feb 14 low of Y115.01, followed by Feb 2 low of Y114.16.
• Local press reports have suggested that PM Kishida will cover the topic of border control easing in a Thursday address. According to the Nikkei, the government is considering lifting quarantine requirements in March for fully vaccinated travellers from low-risk countries.
• BoJ Gov Kuroda will speak in the National Diet twice today, extending a string of his recent appearances in parliament.
• On the data front, trade balance and CPI will take focus on Thursday and Friday respectively.