He's likely to make more bullish comments on the economy and deflation. That will put upward pressure on short-term interest rates, which is yen positive.

Good economic figures will surely be euro supportive. The euro-zone economy is expanding faster than expected.

The BOJ is expected to end its so-called quantitative easing policy of flooding the economy with cash by the end of April. That will put upward pressure on short- term interest rates and reduce liquidity in the money markets, which is yen positive for sure.

Mr. Koizumi remains willing to pursue structural reforms, so long as the economy permits. He's not going to abandon reforms. However, realistically it's also difficult to assume very quick progress.

The trade surplus figures showed strong exports and domestic demand. This shows the economy is robust enough to withstand a rate increase later this year, supporting the yen.

The near-term outlook for the yen remains bearish, ... obviously it will be difficult to come up with a rate hike and we do perceive some political pressures.