The Japanese Yen is under pressure due to uncertainty surrounding the timing of the next Bank of Japan interest rate hike and the Federal Reserve's hawkish stance.
The Japanese Yen (JPY) remains weak against the US Dollar (USD) approaching a multi-month low during the Asian session on Friday. A fall in real household spending in Japan for the fourth consecutive month in November points to economic fragility and fuels doubts about the timing of the next Bank of Japan (BoJ) rate hike. This, coupled with the Federal Reserve 's (Fed) hawkish signal regarding a slower pace of rate cuts in 2025, continues to undermine the lower-yielding JPY.
The USD holds steady near a two-year high, supporting the USD/JPY pair ahead of the US Nonfarm Payrolls (NFP) report. Traders are hesitant and await the release of the NFP report later today. The BoJ's uncertainty regarding rate hikes, Japan's economic vulnerability, and the Fed's hawkish stance are key factors impacting the JPY.
Japanese Yen USD/JPY Bank Of Japan Federal Reserve Interest Rate Hikes US Nonfarm Payrolls Economic Outlook
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