Russian Attack On Ukraine Fuels Volatility, Tokyo Core CPI Picks Up

Safe haven bid weighed on USD/JPY in Thursday's Asia hours, but the rate recouped its initial losses into the London morning, as Russia's assault on Ukraine inspired broad-based greenback purchases in European hours. It should be added that the yen was the second best performer in G10 FX space, benefiting from its safe haven status.

• FinMin Suzuki declared that Japan is implementing swift export controls and sanctions on finance against Russia in coordination with Western allies. He noted that the government is looking into measures to alleviate the impact of rising energy costs.
• Core prices in Tokyo (a bellwether of nationwide prices) rose +0.5% Y/Y in February, accelerating from January's +0.2% growth and marginally beating the median estimate of +0.4%.
• Next week's data highlights include retail sales & flash industrial output (Monday), capex & company profits/sales (Wednesday) as well as jobs data (Friday). Elsewhere, BoJ's Nakagawa will speak on Thursday.
• USD/JPY last trades at Y115.55, barely changed on the day. A clearance of Feb 15 high of Y115.87 would encourage bulls to take aim at Feb 10/Jan 4 highs of Y116.34/35. On the flip side, losses past Feb 24 low/100-DMA at Y114.41/39 would expose Feb 2 low of Y114.16.