Ella 
During the Asian session on Thursday, the Japanese yen (JPY) struggled to gain clear momentum, with the yen remaining within the previous day’s large range against the US dollar. The results of Japan’s spring wage negotiations showed that most companies have agreed to the union’s demands for wage increases, paving the way for the Bank of Japan to adjust its policy stance. In addition to this, geopolitical tensions are also boosting the safe-haven Japanese yen, which coupled with subdued demand for the US dollar (USD) has put some pressure on the USD/JPY pair.
Meanwhile, Bank of Japan Governor Kazuo Ueda gave a slightly gloomier assessment of the economy on Monday and scaled back bets on an early interest rate hike, limiting the yen’s gains. On the other hand, the dollar struggled to gain clear momentum as investors sought further clarity on the Federal Reserve’s interest rate cut path. This further adds to USD/JPY’s range-bound moves, as traders now look ahead to this week’s key central bank event risks – Tuesday’s high-profile Bank of Japan decision and Wednesday’s Fed policy – before placing new directional bets. .
Meanwhile, Thursday’s U.S. economic calendar, with monthly retail sales, the Producer Price Index (PPI) and the usual number of U.S. jobless claims last week, may provide some input for the USD/JPY pair. Some motivation. However, the market’s immediate reaction may be limited, and short-term traders should proceed with caution.
