Anna 
The Japanese yen (JPY) has shown a modest rebound against the US dollar (USD) on Wednesday, regaining some of its recent losses. In early European trade, USD/JPY touched a fresh intraday low near 143.30. However, analysts suggest that yen bulls might not be placing significant bets following the Bank of Japan’s (BoJ) decision to maintain its ultra-easy monetary policy on Tuesday. The central bank retained its dovish policy guidance, disappointing some investors who were anticipating a shift away from negative rates in the near term.
Additionally, data released on Wednesday revealed that Japan’s import and export figures for November fell more than anticipated. This, combined with a generally positive sentiment in equity markets, is perceived to weaken the safe-haven appeal of the Japanese yen. Conversely, the US dollar has attracted some buyers, providing support to USD/JPY amid uncertainty about when the Federal Reserve might initiate interest rate cuts.
Traders seem cautious about making aggressive directional bets ahead of crucial US inflation data. The US core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, is set to be released on Friday. The outcome of this data is expected to influence future Fed policy decisions, playing a crucial role in determining demand for the dollar and establishing new directional momentum for USD/JPY.
In the meantime, the Conference Board’s Consumer Confidence Index, existing home sales data, and an appearance by Chicago Fed President Austan Goolsbee are anticipated to offer short-term trading opportunities later in Wednesday’s North American session.
