Japanese Yen fails to build on stronger CPI-led intraday uptick against USD
The Japanese Yen (JPY) attracted some follow-through buying for the second successive day following the release of slightly higher-than-expected consumer inflation figures from Japan.
This comes on top of Thursday's hawkish remarks from BoJ Governor Kazuo Ueda, which keeps expectations for a December interest rate hike in play.
Adding to this, Japan's Prime Minister Shigeru Ishiba’s economic stimulus package worth ¥39 trillion boosts the JPY and exerts some pressure on the USD/JPY pair.
That said, the prevalent risk-on environment and elevated US Treasury bond yields hold back traders from placing aggressive bullish bets around the lower-yielding JPY.
Investors remain concerned that US President Donald Trump's policies could reignite inflation and force the Federal Reserve (Fed) to cut interest rates slowly.
This has been a key factor behind the recent surge in the US bond yields, which keeps the US Dollar (USD) near the year-to-date peak and lends support to the USD/JPY pair.
Source: FXStreet