Yen Weakens as Markets Eye US Inflation Data

The Japanese yen fell over 144 against the dollar. This drop comes as markets wait for US inflation data and Japan’s inflation figures, affecting future rate decisions. Last week, the yen dropped 2.5% due to a strong dollar rebound. Investors had less hope for the US Fed’s significant, quick rate cuts.

In Japan, the central bank kept its loose money policies and didn’t hint at ending negative rates in its December meeting. A report from this meeting revealed some talk about when to stop the significant stimulus, but many members aren’t in a hurry to do so.

USDJPY Analysis 4-hour Chart