No major events are expected today.

The Japanese yen (JPY) is unable to capitalize on the previous day’s recovery against its American counterpart and attracts new sellers during the Asian session on Friday. Data released on Thursday showed that business activity in Japan’s manufacturing and services sectors declined in October. Furthermore, the drop in Tokyo’s core inflation rate below the Bank of Japan’s (BoJ) 2% target weakens expectations for further rate hikes in 2024 and puts some pressure on the yen.

Additionally, the overall positive risk sentiment further undermines the JPY’s status as a “safe haven,” and the emergence of some US dollar (USD) buying supports the USD/JPY pair around the mid-151.00 level. However, recent verbal intervention by Japanese authorities helps limit significant JPY declines and stabilizes the currency pair. Traders are now awaiting the release of US macroeconomic data for short-term momentum amid political uncertainty ahead of Japan’s general elections on Sunday.

Recommendations: Monitor the 152.00 level. If it consolidates above, consider Buy positions; if it bounces back, consider Sell positions.