Important events today:

19.12 06:30 UTC: JPY – Bank of Japan press conference

USD/JPY is trading near 155.95 amid heightened attention to Japan’s monetary policy. The Bank of Japan raised its rate to 0.75% and signaled that further steps are possible if stable inflation and wage growth persist. Even if part of the decision was already priced in, higher rates generally support the yen.

In the US, the dollar is pressured by expectations of lower rates following the Fed’s December decision and the market’s reaction to inflation data. Slower annual price growth fuels talk of further easing in borrowing costs, while concerns over data quality increase sensitivity to new releases and regulator comments.

Overall, the balance of factors shifts toward a gradual strengthening of the yen, making pressure on USD/JPY the base scenario. Risks include a sudden rise in safe-haven demand for the dollar and softer signals from the Bank of Japan regarding future hikes.

Recommendations: SELL 155.95, SL 156.45, TP 154.45