An IMF report states that the Bank of Japan must maintain an ultra-easy policy for a prolonged period despite higher commodity prices, and a rebound in consumption.

Key notes

• BoJ 'expressed concern' over IMF's recommendation to target shorter yields under yield curve control.
• IMF's article 4 staff report: escalation of Ukraine conflict poses significant downside risks to japan's economy.
• Cuts Japan's 2022 economic growth forecast to 2.4%, down from 3.3% projected in January.

Meanwhile, the  Bank of Japan (BOJ) Governor Haruhiko Kuroda said earlier this week that the yen's recent moves were "somewhat rapid", joining a chorus of policymakers who have warned that sharp falls in the currency could hurt the country's import-reliant economy.

USD/JPY is moving in on the highest levels since 2015 and last months highs of 114.64.