The post Japanese Yen hangs near multi-month low against USD; bears have the upper hand appeared on BitcoinEthereumNews.com.

The Japanese Yen struggles to lure buyers amid wavering BoJ rate hike expectations. The risk-on mood and the wider US-Japan yield differential also undermine the JPY. Subdued USD demand acts as a headwind for USD/JPY ahead of the US CPI report. The Japanese Yen (JPY) struggles to gain any meaningful traction and languishes near a multi-month low against its American counterpart amid doubts over the Bank of Japan’s (BoJ) rate hike plans. Signs of broadening inflationary pressures in Japan keep the door open for a BoJ rate hike in January or March. Adding to this, BoJ Deputy Governor, Ryozo Himino, signaled on Tuesday that a rate hike remains a tangible possibility at the upcoming meeting. Himino’s comments, however, lacked direct clues on the possibility of a January rate hike. Moreover, some investors are betting that the BoJ may wait until the spring negotiations before pulling the trigger.  Meanwhile, the Federal Reserve’s (Fed) hawkish shift in December has been a key factor behind the recent surge in the US Treasury bond yields. This resulted in the widening of the US-Japan yield differential, which, in turn, is seen as another factor undermining the lower-yielding JPY. Apart from this, the risk-on mood is holding back traders from placing bullish bets around the safe-haven JPY. That said, subdued US Dollar (USD) price action acts as a headwind for the USD/JPY pair ahead of the release of the latest US consumer inflation figures. The crucial US Consumer Price Index (CPI) report might influence the Fed’s policy path and drive the USD demand.  Japanese Yen bulls remain on the sidelines amid BoJ rate hike uncertainty A fall in Japan’s household spending and real wages for the fourth successive month in November amid higher prices, keeping the door open for a rate hike by the Bank of…

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Filed under: News - @ January 15, 2025 3:27 am