Ella 
The Japanese yen (JPY) traded higher against the U.S. dollar for a third straight day, jumping to a near four-week high during Thursday’s Asian session. Data released earlier this week showed that the consumer price index (CPI) in the Japanese capital Tokyo rebounded from a 22-month low and was back above the Bank of Japan’s (BoJ) 2% target in February. That, coupled with speculation that ongoing annual wage talks will lead to a second straight year of big pay hikes and fuel demand-driven inflation, has raised bets that the Bank of Japan is about to shift its policy stance and supported Japan’s Yuan.
Meanwhile, reports suggest the Bank of Japan may cut its assessment of consumption and factory output this month, while signs of economic weakness underscore the fragile state of Japan’s economic recovery. Additionally, real wages in Japan shrank for the 22nd consecutive month in January, but this had little impact on bullish sentiment for the yen. On the other hand, the US dollar (USD) is hovering near its lowest levels since early February amid uncertainty over the Federal Reserve’s (Fed) rate-cutting path. This further led to the USD/JPY exchange rate falling further below the 149.00 mark.
