The post Japanese Yen drifts lower as traders await the highly-anticipated BoJ decision appeared on BitcoinEthereumNews.com.

The Japanese Yen bulls opt to lighten their bets ahead of the crucial BoJ policy decision. Japan’s core inflation accelerates in December and lifts bets for a BoJ interest rate hike. The US Dollar hangs near the monthly low set this week and could cap the USD/JPY pair. The Japanese Yen (JPY) ticks lower during the Asian session on Friday amid some repositioning ahead of the highly-anticipated Bank of Japan (BoJ) policy decision. The downside for the JPY, however, seems cushioned amid firming expectations that the BoJ will hike interest rates amid signs of broadening inflationary pressures in Japan. In fact, government data released earlier today showed that Japan’s core consumer prices rose at the fastest annual pace in 16 months. Moreover, a core reading that excludes both fresh food and energy prices remained above the BoJ’s 2% annual target for a fourth straight month.  Meanwhile, the prospects for further policy tightening by the BoJ and bets that the Federal Reserve (Fed) will cut interest rates twice this year could narrow the US-Japan rate differential. Apart from this, worries about US President Donald Trump’s trade policies should continue to act as a tailwind for the JPY. The US Dollar (USD), on the other hand, languishes near the monthly low amid concerns over the implications of a Fed-Trump policy clash on interest rates. This, in turn, favors the USD bears and might further contribute to keeping a lid on any meaningful upside for the USD/JPY pair.  Japanese Yen struggles to lure buyers despite stronger domestic CPI; focus remains on BoJ Data released by the Japan Statistics Bureau this Friday showed that the National Consumer Price Index (CPI) climbed 3.6% YoY in December, compared to the previous month’s reading of 2.9%. Further details of the report revealed that Japan’s core consumer prices…

---

Filed under: News - @ January 24, 2025 2:19 am