Japanese Yen climbs as Tokyo CPI does little to dent BoJ rate hike bets
The post Japanese Yen climbs as Tokyo CPI does little to dent BoJ rate hike bets appeared on BitcoinEthereumNews.com.
The USD/JPY pair attracts some sellers for the second straight day following the release of Tokyo inflation figures and slides to the 155.65 area during the Asian session on Friday. Spot prices, however, remain on track to register gains for the second week in a row, and the fundamental backdrop warrants caution before positioning for an extension of the corrective fall from a two-week top, touched on Wednesday. Data released earlier today showed that the core consumer inflation in Tokyo – Japan’s capital city – cooled below the Bank of Japan’s (BoJ) 2% target for the first time since 2024. The inflation, however, remains well above historic levels, which, along with the recent hawkish comments from BoJ officials, keeps hopes alive for further tightening by the central bank and provides a modest lift to the Japanese Yen (JPY). In fact, BoJ Governor Kazuo Ueda reiterated on Thursday that the basic stance is to continue raising rates if the likelihood of our economic and price forecasts materialising heightens. Moreover, BoJ Board Member Hajime Takata said that the central bank must conduct further rate hikes in a gradual manner. This, along with trade jitters and geopolitical risks, benefits the safe-haven JPY and weighs on the USD/JPY pair. Meanwhile, reports suggested that Japan’s Prime Minister Sanae Takaichi had expressed reservations about additional monetary tightening during her meeting with the governor. Furthermore, concerns about Japan’s fiscal health might hold back the JPY bulls from placing aggressive bets. The US Dollar (USD), on the other hand, remains close to the monthly high and could further support the USD/JPY pair. Traders trimmed their bets for more aggressive policy easing by the US Federal Reserve (Fed) after minutes from the January FOMC meeting showed that the central bank is in no hurry to cut interest rates further.…
Filed under: News - @ February 27, 2026 2:20 am