USDJPY Analysis: December 25, 2023


USDJPY Analysis – In response to data indicating a continued decrease in Japanese inflation in November, the Japanese yen remained steady at around 142.2 per dollar. Both the headline and core inflation rates in the country dropped to a 16-month low of 2.8% and 2.5% respectively. However, the latter has remained above the central bank’s 2% target for the twentieth consecutive month. Earlier this week, the yen faced some pressure when the Bank of Japan decided to stick with its ultra-loose monetary policy, without hinting at any potential adjustments towards policy normalization in the coming year.

BOJ Governor Kazuo Ueda adopted a more dovish stance than anticipated in the post-meeting press conference, assuring that the central bank wouldn’t hesitate to implement additional easing measures if needed. Meanwhile, recent US economic data suggesting potential interest rate cuts by the Federal Reserve next year offered some support to the yen.

USDJPY Analysis

USDJPY Analysis – 4H Chart