The Japanese yen (JPY) remains under pressure and is trending slightly lower against the US dollar in the Asian session on Friday. Investors are concerned about Japan's increasingly strained financial situation due to Prime Minister Sanae Takaichi's massive spending plans, while economic growth remains sluggish. At the same time, the current risk-on market environment is making the yen less competitive as a safe-haven asset. However, the yen appears to be holding back from falling further due to growing speculation that the Bank of Japan (BoJ) could raise interest rates as early as next week.

Therefore, many traders are choosing to wait, not daring to take large positions before the BoJ's meeting results on December 18-19 are released. Meanwhile, the US dollar is weakening and hovering near a two-month low as the market believes the Fed will continue to cut interest rates. This contrast creates a stark contrast: the BoJ is seen as increasingly hawkish, while the Fed is tending towards dovishness. This difference in policy direction could be a positive boost for the yen and potentially prevent the USD/JPY pair from strengthening below the 155.00 level. (az)

Source: Newsmaker.id