Anna 
The Japanese yen (JPY) struggled to maintain momentum after experiencing modest intraday gains, hovering near the three-week low reached on Friday. The aftermath of Japan’s New Year’s Day earthquake has fueled the belief that the Bank of Japan will not abandon its negative interest rate policy at the upcoming meeting on January 22-23. This sentiment, coupled with marginal gains in the U.S. dollar (USD), has kept USD/JPY stable, trading just below the 144.00 level ahead of Monday’s European session.
Recent U.S. economic data continues to reflect resilience in the U.S. economy, supported by hawkish comments from Federal Reserve officials. This has diminished expectations for more aggressive policy easing by the Fed, contributing to the rise in U.S. Treasury yields and providing support for the dollar. However, dollar bulls appear cautious, refraining from making bold moves as they await the release of the latest consumer inflation data scheduled for Thursday.
Despite the supportive factors for the U.S. dollar, a weaker risk tone in the market favors the Japanese yen’s safe-haven status. This dynamic is expected to act as a limiting factor for the USD/JPY pair, restraining significant upward movements.
