The USD/JPY pair has reached a multi-day low around 146.35, despite attracting buying activity during Monday’s Asian session, dropping over 150 points since November 2022.

The hawkish comments made by Bank of Japan Governor Kazuo Ueda and a little decline in the value of the US dollar have caused the Japanese Yen to appreciate against every other member of the Group of 10, indicating potential interest rate increases.

Bank of Japan Governor Kazuo Ueda’s hawkish remarks and a modest pullback of the US Dollar have led to the Japanese Yen strengthening against all Group-of-10 currencies, signalling possible interest rate hikes.

The prognosis favours high US Treasury bond rates and the Dollar, which could encourage dip-buying near the USD/JPY exchange rate. Before making big bearish bets without adequate macro data, caution is suggested.

Traders may stay out of the market before US consumer inflation numbers, PPI, and Retail Sales. Volatility from the ECB will fuel USD demand, and spot prices should be restrained.

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