European low of 116.36 to hit 117.00 in the Asian midday, though this move
was aided by EUR/JPY gains. There is talk of further long liquidation to
go in the 117.00-117.30 area. Japanese CPI was unchanged m/m in January to
give a 0.2% y/y fall, though had no impact. Economics Minister Aso said
the CPI drop was not a "good fall," but added that he does not want the
BOJ to ease monetary policy. However, Japanese retail and wholesale sales
rose a combined 1.8% in Q4, up from a 1.4% fall in Q3, though with
similarly little impact. Finance Minister Miyazawa said a slowing US
economy may knock 0.4%-0.6% off Japan's annual GDP growth. BOJ governor
Hayami said the FX mkt adjusts itself after excessive moves.