No major events are expected today.

The USD/JPY pair is holding around 155.70 on December 12, but the balance of factors is shifting in favor of the yen following weak U.S. labor market data and the Federal Reserve’s rate cut. As expectations for yields on dollar assets decline, investors increasingly reassess long dollar positions, making the pair more sensitive to any negative signals from the U.S.

Additional support for the yen comes from growing confidence that the Bank of Japan is ready to continue policy normalization at one of its upcoming meetings, provided inflation and wage growth remain stable. Against this backdrop, the gap in interest rate expectations between the U.S. and Japan is narrowing, increasing the yen’s attractiveness and boosting demand during periods of weaker global sentiment.

During the day, key drivers for USD/JPY will be fresh U.S. data and comments from Fed officials, as well as statements from Japanese policymakers regarding the pace of policy normalization. If U.S. data remain weak, the likelihood of further downside in the pair increases, while strong figures could trigger a short-term dollar rebound.

Recommendations: SELL 155.70, SL 156.20, TP 154.20