Japanese Yen Recovers Ground Ahead of BoJ Decision

The USD/JPY pair pulled back during the Asian session on Thursday, slipping toward the 156.00 level and breaking a three-day winning streak that had previously pushed prices to a nearly two-week high. This slight recovery by the Japanese Yen comes as traders square positions and shift their complete focus to the upcoming Bank of Japan rate decision scheduled for Friday, where market participants are increasingly pricing in expectations of a more hawkish stance from central bank policymakers. Japanese equities extended gains on Thursday as the Nikkei 225 climbed 0.5% above 64,200 and the Topix rose 1% to 4,100. Despite the US Federal Reserve raising interest rates, the market was lifted by a weaker yen that bolstered exporters and declining oil prices that eased economic pressures, driving broad-based gains led by heavyweights like Nintendo, Mitsubishi Heavy Industries, Fujikura, SoftBank Group, and Mitsubishi UFJ.