Japanese Yen weakens on soft Tokyo CPI, fiscal and political concerns
The post Japanese Yen weakens on soft Tokyo CPI, fiscal and political concerns appeared on BitcoinEthereumNews.com.
The Japanese Yen (JPY) attracts fresh sellers during the Asian session after data released this Friday showed that consumer inflation in Tokyo – Japan’s capital city – fell sharply to a nearly four-year low in January. This eases pressure on the Bank of Japan (BoJ) to raise interest rates soon. Furthermore, worries about Japan’s financial health amid Prime Minister Sanae Takaichi’s reflationary policies and political uncertainty ahead of the snap election on February 8 undermine the JPY. This, along with a modest US Dollar (USD) strength, lifts the USD/JPY pair closer to the 154.00 mark and the 100-day Simple Moving Average (SMA) pivotal resistance. However, expectations of coordinated US-Japan intervention to strengthen the JPY might hold back bearish traders from placing aggressive bets. Meanwhile, trade uncertainties fueled by US President Donald Trump’s tariff threats and geopolitical risks keep a lid on the recent optimism. This is evident from the cautious mood around the equity markets, which might further contribute to limiting losses for the safe-haven JPY. The USD, on the other hand, might struggle to attract any meaningful buyers amid bets for more rate cuts by the US Federal Reserve (Fed) and concerns about the central bank’s independence. This, in turn, might cap the USD/JPY pair. Japanese Yen is pressured by weak Tokyo CPI report, fiscal health concerns and political uncertainty A government report released earlier this Friday showed that the headline Consumer Price Index (CPI) in Tokyo – Japan’s capital city – fell from 2.0% prior to 1.5% in January, marking its weakest reading since February 2022. Adding to this, core CPI, which excludes volatile fresh food prices, declined to 2% from 2.3% in December, while a gauge that excludes both fresh food and energy prices eased to 2.4% in January from 2.6% in the previous month. The data…
Filed under: News - @ January 30, 2026 3:24 am