Ella 
The Japanese yen (JPY) extended its modest intraday gains, dragging USD/JPY to fresh daily lows around 154.00 ahead of Thursday’s European session. Bank of Japan (BoJ) Governor Kazuo Ueda did not comment on monetary policy but left room for another rate hike next month. This, along with ongoing geopolitical risks from the intensifying conflict between Russia and Ukraine, has been a key factor supporting the safe-haven yen amid intervention concerns.
However, against a backdrop of positive risk sentiment and rising U.S. Treasury yields, further appreciation of the yen appears unlikely. Investors now appear to believe that policies proposed by U.S. President-elect Donald Trump will drive up inflation and force the Federal Reserve to slow its rate-cutting cycle. This continues to provide a boost to U.S. bond yields and favors U.S. dollar (USD) bulls, so caution should be exercised before placing new bullish bets on the lower-yielding Japanese yen and the USD/JPY pair sinks further .
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