Yen Catches Bid Amid Demand For Safety, Industrial Output & Retail Sales Disappoint

The yen remains one of the best G10 performers as participants flocked into safe havens in reaction to the escalation in international response to Russia's assault on Ukraine. A number of leaders announced crippling sanctions against Moscow rattling financial markets.

• PM Kishida pointed to the importance of speed in cutting Russian banks off the SWIFT system and freezing Putin's assets, as he pledged to cooperate with other countries on further sanctions.
• Japan's industrial output shrank 1.3% M/M in January, according to preliminary data, with consensus forecast pointing to a 0.7% contraction. Retail sales fell 1.9% M/M in January, a worse outturn than the 1.2% decline forecast by analysts.
• Later this week, focus turns to capex & company profits/sales (Wednesday), comments from BoJ's Nakagawa (Thursday) & jobs market data (Friday).
• USD/JPY has clawed back its initial losses and last changes hands at Y115.58, little changed on the day. A break above Feb 15 high of Y115.87 would encourage bulls to take aim at Feb 10/Jan 4 highs of Y116.34/35. Meanwhile, losses past Feb 24 low of Y114.41 would give bears a green light for targeting Feb 2 low of Y114.16.