USD/JPY: Bears are hopeful around 114.80 as the geopolitical jitters underpin yen

• USD/JPY skids lower to 114.87 amid the improvement in safe-haven appeal.
• The extension of military drills in Belarus may dent the market sentiment further.
• Bears may get stronger once the asset skid below 114.80.

The USD/JPY pair has witnessed intensified selling right from the first tick on Monday as investors have preferred the Japanese yen over the greenback amid improving safe-haven appeal. Bears are likely to drift USD/JPY lower to 114.80 and follow-up selling may take place once it gets failed to attract substantial bids near it.

The negative developments over the Russia- Ukraine tussle have spooked the market sentiment. Latest headlines from eastern Ukraine that Russia will extend military drills in Belarus that were due to end on Sunday, the Belarusian defence ministry announced, has added fuel to the fire.

Earlier, the Russian leader Vladimir Putin on a phone call with French President Emmanuel Macron on Sunday blamed the Ukrainian military for the escalation of tensions in the Donbas, as per the BBC news.

Meanwhile, the US dollar index (DXY) has opened on a positive note on Monday as investors have preferred the DXY to coincide with the risk-aversion theme. The US markets are closed on Monday on account of President’s Day therefore, investors will put more emphasis upon the headlines on the developments over the Russia-Ukraine tensions. However, the speech from the Federal Reserve (Fed)’s member Michelle W. Bowman, which is due on Monday will provide some insights into the strategy of the Fed to combat inflation.