📊 Japanese Yen Gains Ground: Key Market Updates
🔹 Japanese Yen (JPY) Recovers Slightly:
The JPY attracts buyers after touching a five-month low against the USD.
Stronger-than-expected National CPI data bolsters hopes of a potential rate hike by the Bank of Japan (BoJ) in early 2025.
🔹 Inflation Insights:
November National CPI rose 2.9% YoY (previous: 2.3%), surpassing expectations.
Core CPI (ex-Fresh Food) increased 2.7% YoY, keeping rate hike expectations alive.
BoJ Governor Kazuo Ueda reiterated the commitment to further rate adjustments if the economy aligns with forecasts.
🔹 USD/JPY Pair Dynamics:
The Federal Reserve's hawkish stance on slower rate cuts in 2025 supports US bond yields and the USD.
Wider US-Japan rate differentials continue to weigh on the lower-yielding JPY.
🔹 Technical Levels to Watch:
Support Zones:
157.00, followed by 156.75 and 155.50.
Breaking 155.00 may shift momentum toward bearish traders.
Resistance Levels:
Bullish targets at 158.00, 159.00, and the 160.00 psychological mark.
🔹 Market Focus:
The upcoming US Personal Consumption Expenditure (PCE) Price Index could provide fresh direction for the USD/JPY pair.
📈 Key Takeaway:
The JPY finds modest support from inflation data and haven flows, but the USD remains resilient due to Fed policies. Traders should watch key levels and economic data for short-term opportunities.