Anna 
The Japanese Yen (JPY) extended its decline against the US Dollar (USD) for the fifth consecutive day on Monday, reaching a one-and-a-half-week low. This downturn comes amidst growing expectations that the Bank of Japan (BoJ) will maintain its super-easy monetary policy stance.
BoJ Governor Kazuo Ueda’s recent assessment of the economy, which leaned towards a slightly bleaker outlook, further reinforced this sentiment. Additionally, the BoJ’s announcement of an unscheduled bond operation this week added pressure on the JPY, contributing to the USD/JPY pair’s advancement beyond the 149.00 mark observed last week.
However, despite these factors, the positive outcome from the spring wage negotiations could potentially pave the way for the BoJ to exit its negative interest rate policy, possibly in April if not in March. This, coupled with subdued demand for the US Dollar amidst uncertainty surrounding the Federal Reserve’s (Fed) rate cut trajectory, may limit any significant upward movement for the USD/JPY pair. Traders are also exercising caution and opting to wait on the sidelines ahead of key events, including the BoJ decision on Tuesday followed by the outcome of the two-day FOMC policy meeting on Wednesday. These events are expected to provide fresh directional cues for market participants.
