Narrowing In On Monthly Highs as Yen Goes Offered Across the Board

EUR/JPY has picked up a bid and last trades at Y129.50, 21 pips better off, as the yen lags all of its G10 peers, with U.S. e-minis & most regional equity benchmarks trading in the green.

• EUR/JPY 1-month ATM implied volatility has fallen to a 1-week low, last sits at 6.51%.
• The EU's spat with the UK over Covid-19 vaccine exports continues, with London pushing back against the bloc's accusations that the Kingdom has implemented an "outright ban" on exporting jabs.
• Elsewhere, ABC reported that the European Parliament's key trade coordinator threatened to shelve a trade pact with Australia, should PM Morrison's gov't fail to come up with a clear plan for making Oz carbon neutral.
• In Germany, FinMin Scholz told participants of an online discussion that "austerity will lose" amid the need to secure adequate financing for investments and welfare.
• Bulls need a clearance of Mar 4 high of Y129.64 before targeting Feb 25 & bull trigger at Y129.98. On the flip side, should Mar 8 low of Y128.78 give way, bears would set their sights on Mar 2 low & key near-term support at Y128.19.
• The latest monetary policy decision from the ECB headlines the European docket today. The announcement will be followed by a press conference with ECB Pres Lagarde.