Ella 
The Japanese yen (JPY) struggled to attract significant buyers during the Asian session on Friday, with the USD/JPY pair holding just below the highest level since early August hit the day before. Japan’s real wages fell for the first time in three months, falling household spending and signs that price pressures from raw material costs are easing, raising concerns about the Bank of Japan’s (BoJ) interest rate hike plan. This continued to weigh on the yen ahead of the Japanese election on October 27, becoming a key factor boosting USD/JPY.
Meanwhile, the initial reaction to stronger-than-expected U.S. consumer inflation data released on Thursday was short-lived amid signs of weakness in the labor market. As the Federal Reserve (Fed) shifts its focus to maximizing sustainable employment, the surge in initial jobless claims in the United States suggests that the U.S. central bank will continue to cut interest rates. This put U.S. dollar (USD) bulls on the defensive, falling below the nearly two-month high set the previous day and sending USD/JPY topping as traders await the release of the U.S. Producer Price Index (PPI).
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