The Japanese yen exhibited minimal movement on Monday, maintaining its position well above the 150 level against the dollar and staying in proximity to three-month lows.
The focus for the week is primarily on the release of Japanese Consumer Price Index (CPI) data for January, scheduled for Tuesday. Market expectations anticipate that core inflation will fall within the Bank of Japan’s targeted 2% annual range. This scenario provides the central bank with less motivation to initiate an aggressive tightening of policy.
The subdued outlook on Japanese monetary policy, particularly with U.S. rates expected to stay elevated, has been a significant factor weighing on the yen in recent months. However, potential losses in the yen are tempered by the looming possibility of government intervention, as historical precedents have seen interventions at levels above 150.