Ella 
In Asia on Wednesday, the Japanese yen moved higher following strong two-way price fluctuations the day before, but lacked bullish conviction and remained within a volatile range. Bank of Japan Governor Kazuo Ueda’s speech at the post-meeting press conference indicated that the conditions for gradually withdrawing large-scale stimulus policies and bringing short-term interest rates out of the negative zone are gradually being met. In addition, higher-than-expected growth in Japanese exports and geopolitical tensions also provided some support for the safe-haven yen.
Meanwhile, the Bank of Japan cut its forecast for core consumer prices in fiscal 2024, reducing expectations that it will begin tightening ultra-loose policies immediately. This may therefore curb aggressive bets by yen bulls, which, coupled with the USD maintaining underlying bullish sentiment, should help limit the downside for USD/JPY. Traders may prefer to stay on the sidelines ahead of U.S. macro data – preliminary fourth-quarter gross domestic product (GDP) and core PCE Price Index (Core PCE Price Index) scheduled for release on Thursday and Friday respectively.
