There has been a shift this week towards expectations of another U.S. interest rate rise in March -- the interest rate differential is there and it is helping the dollar.

His number one objective will be to stress continuity. Continuity means more interest rate increases, so that means the dollar can keep going up.

The yen is being supported by a liquidation of short positions.

The dollar has depreciated sharply against the euro and more modestly against the yen with dollar sentiment deteriorating as fears increase over the outlook for the US economy.

I think it's inevitable that Governor Fukui will indicate we're that bit closer to the end of quantitative easing but I still think the message will be one of relative caution.

The broader picture for the yen's decline is down to the continued deterioration in Japan's trade surplus.