No significant events are expected today.

The Japanese yen (JPY) attracts some intraday sellers after reaching a nearly one-month high against its American counterpart during the Asian session on Friday. However, a significant decline in the yen appears unlikely amid rising expectations that the Bank of Japan (BoJ) will raise interest rates again next week. These expectations have been supported by recent remarks from BoJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino. This, along with a softer risk sentiment, favors yen bulls.

Meanwhile, signs of easing inflation in the United States suggest that the Federal Reserve (Fed) may not rule out the possibility of rate cuts by the end of this year. This has led to a sharp drop in U.S. Treasury yields since the beginning of the week, and the resulting narrowing of the yield differential between the U.S. and Japan may support the Japanese yen. Furthermore, the Fed’s rate cut outlook keeps the U.S. dollar (USD) near its weekly low and should limit attempts to recover in the USD/JPY pair.

Recommendations: Monitor the 155.00 level; trade primarily with Sell orders.