The Japanese Yen (JPY) exchange rate experienced a slight decline against the US dollar for the second consecutive day and remained near the lower end of its weekly range during the Asian session on Thursday. Japan’s unexpected economic recession has made it difficult for the Bank of Japan (BoJ) to shift from its decade-long accommodative stance. Private business surveys also indicated stagnation in overall business activity in January, which, combined with a generally positive risk sentiment, weakened the safe-haven position of the JPY.
 
On the other hand, the US Dollar (USD) was supported by the hawkish tone of the FOMC meeting minutes released on Wednesday, highlighting concerns about the risk of cutting interest rates too soon. This served as an additional factor boosting demand for the USD/JPY pair. The JPY's weakening below 150.00 sparked speculation about potential intervention by Japanese authorities, which may limit aggressive bearish bets against the JPY and cap the currency pair’s upside potential.
 
Looking ahead, traders are now anticipating the US economic calendar, which includes the release of Weekly Initial Jobless Claims, preliminary PMI data, and Existing Home Sales data during the early North American session. Alongside the speech by Federal Reserve Governor Philip Jefferson and US bond yields, these events could provide a push for the USD/JPY pair. Traders will also monitor overall risk sentiment for short-term opportunities, while the fundamental backdrop supports gains and strengthens the outlook for a positive breakout in the near term.
 
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Disclaimer!
 
The analysis of the "Yen Exchange Rate" is based on both fundamental and technical perspectives from reliable sources and is not a recommendation or invitation. Remember that this content aims to enrich readers’ information. Always conduct your own research on other forex information as a reference for your trading.
 
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