Japanese yen gets significant traction in response to hawkish remarks by Bank of Japan Governor Takata.

In response to Bank of Japan (BoJ) board member Hajime Takata’s hawkish statements, the Japanese yen (JPY) saw aggressive bids during the Asian session on Thursday and rallied to more than a one-week high against the US dollar. This comes on top of expectations that Japanese authorities will intervene to halt. Further weakness in the native currency. Which, combined with a softer The risk tone lends a modest boost to the safe-haven JPY.

A minor drop in the US dollar adds to the downward pressure on USDJPY.

The US Dollar (USD) falls slightly as traders reposition themselves. Ahead of the release of the critical US Personal Consumption Expenditures (PCE) Price Index. This contributes to the USDJPY pair’s strong intraday drop below the psychological milestone of 150.00. However, it is still smart to wait for strong follow through selling. Before concluding that the currency pair has peaked in the near term.

Daily Market movers: Japanese yen receives big gain after BoJ’s Takata revives bets on an imminent policy shift.

Hajime Takata, a Bank of Japan board member, stated. That the central bank should explore taking a nimble and flexible strategy to exiting ultra loose monetary policy. As the 2% inflation objective becomes more attainable.
A milder risk tone supports the safe haven Japanese Yen. As Japan’s vice finance minister for foreign affairs, Masato Kanda, warns. That the government is prepared to take appropriate action against excessive exchange rate movements and volatility.
Slightly higher consumer inflation in Japan has fueled speculation. That the BoJ will eventually shift away from its ultra loose policy settings. While an unanticipated recession may delay the central bank’s aim to tighten monetary policy.
Official data released on Thursday indicated that Japanese retail sales increased by 2.3% year on year through January, but industrial production fell 7.5% during the reporting month.
The second reading of the US GDP was issued. on Wednesday indicated that the world’s largest economy increased at a 3.2% annualized rate in the fourth quarter, down from the previous estimate of a 3.3% gain.

Statistics revealed that the US economy is in decent form.

Nonetheless, the statistics revealed that the US economy is in decent form, which, together with hawkish remarks from many Federal Reserve officials reaffirming the higher-for-longer interest rate narrative, bolsters US Dollar bulls.
New York Fed President John Williams stated that the central bank is expected to begin decreasing interest rates this year, depending on how the data comes in, albeit there is still a long way to go before reaching the 2% inflation target.
Atlanta Fed President Raphael Bostic emphasized that the US central bank has not yet declared victory over inflation, adding that he is When it comes to relaxing monetary policy, we are comfortable urging patience.
Furthermore, Boston Fed President Susan Collins stated that it will most likely be appropriate to begin relaxing policy later this year, but the route to returning inflation to its 2% target will likely be rocky.

Traders are now anticipating the release of the critical US PCE Price Index for a new directional impetus.

This continues to be a tailwind for the US dollar and could provide some support to the USDJPY pair ahead of the crucial US Personal Consumption Expenditures (PCE) Price Index, the Fed’s favored inflation indicator.
Thursday’s US economic docket also includes the release of the customary Weekly Initial Jobless Claims, the Chicago PMI, and Pending Home Sales, which, combined with Fed talk, may infuse some volatility in the markets.