USD/JPY bears attack 115.00 as chatters of Russian invasion spoil the mood

• USD/JPY bounces off intraday low but prints two-day losing streak.
• Market sentiment sours with yields, stock futures down as Russia-Ukraine woes escalate.
• US Secretary of State Blinken said Russia will invade Ukraine before the night is over, Kyiv declares state of emergency.
• No major data from Japan after a holiday, US Q4 GDP, geopolitics crucial for fresh impulse.

USD/JPY stays pressured around 114.85, down for the second consecutive day during the initial hour of Thursday’s Tokyo open. The risk barometer pair portrays the market’s risk-off mood as Japanese traders return from a holiday on Wednesday.

Market sentiment recently soured at a faster pace as a state of emergency in Ukraine joins widespread chatters of the imminent Russian invasion of Ukraine. On the same line are the latest comments from US Secretary of State Antony Blinken who believed Russia will invade Ukraine before the night is over.

Previously, Ukraine President Volodymyr Oleksandrovych Zelenskyy mentioned around 200K Russian troops near the border while also saying, "Today, (Russian President Vladimir) Putin did not respond to a request for a phone call."

Elsewhere, recently upbeat comments from San Fransisco Fed President Mary Daly also weigh on the market sentiment amid fears of faster rate hikes. The policymaker cited 'more urgency' on rate hikes in her latest speech.

Against this backdrop, Wall Street marked losses and the S&P 500 Futures also drop 0.40% intraday at the latest. Further, the US 10-year Treasury yields snap two-day rebound by declining 1.7 basis points (bps) to 1.95% by the press time.

Moving on, the second reading of the US Q4 GDP, expected 7.0% annualized versus 6.9% prior, will join the US New Home Sales for January and Personal Consumption Expenditure details for the fourth quarter (Q4) to decorate the calendar. Though, major attention will be given to geopolitics and Fedspeak for clear directions.

Technical analysis

A daily closing below 50-day EMA level surrounding 114.75 becomes necessary for short-term USD/JPY bears to keep reins.