The post Japanese Yen weakens despite CPI rise as focus remains on BoJ policy appeared on BitcoinEthereumNews.com.

The Japanese Yen (JPY) attracts fresh sellers during the Asian session on Friday and slides back closer to the weekly low, touched against its American counterpart the previous day. The downtick defies a rise in Japan’s National Consumer Price Index (CPI), which reaffirmed market bets for an imminent interest rate hike by the Bank of Japan (BoJ) later today. The JPY bulls, however, remain on the sidelines and await more cues about the BoJ’s future policy path going into 2026, suggesting that the focus will remain on Governor Kazuo Ueda’s post-meeting press conference. Heading into the key central bank event risk, Japan’s fiscal woes and a positive risk tone, bolstered by the prospects for lower US interest rates, seem to undermine the safe-haven JPY. The US Dollar (USD), on the other hand, remains close to the weekly high as traders look past softer US consumer inflation figures released on Thursday. This is seen as another factor acting as a tailwind for the USD/JPY pair. Meanwhile, bets for more interest rate cuts by the US Federal Reserve (Fed) might keep a lid on any meaningful upside for the USD and the USD/JPY pair amid hawkish BoJ expectations. Japanese Yen bulls remain on the sidelines after National CPI, as focus remains on BoJ decision Japan’s Statistics Bureau reported earlier this Friday that the National Consumer Price Index (CPI) rose 2.9% YoY in November, down slightly from 3.0% in the previous month. Further details revealed that a core gauge, which excludes volatile fresh food prices, held steady at 3%, as expected. Meanwhile, the core CPI that excludes both fresh food and energy prices, which is closely watched by the BoJ as a measure of underlying inflation, eased from 3.1% to 3% in November. Nevertheless, inflation in Japan remained sticky and well above the…

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Filed under: News - @ December 19, 2025 3:29 am