No significant events are expected today.

The Japanese yen (JPY) remains under pressure after data released on Friday during the Asian session showed that Japan’s core consumer prices in August rose at the slowest pace in nine months. This coincides with domestic political uncertainty and gives the Bank of Japan (BoJ) additional reasons to delay raising interest rates. Another factor undermining the yen’s position as a safe-haven currency is the overall optimism in the stock markets.

However, yen bears seem reluctant to make aggressive bets and prefer to wait for the results of the two-day BoJ monetary policy meeting. Meanwhile, the US dollar (USD) is seeking to strengthen its position after a sharp rebound following the FOMC meeting from its lowest level since February 2022, acting as a tailwind for the USD/JPY pair, which reached a one-and-a-half-week high on Thursday. Nevertheless, expectations that the BoJ will stick to its normalization path and prospects of further Fed rate cuts may limit the growth of the base currency.

Recommendations: BUY 148.15, SL 147.65, TP 149.35.