The yen is rising against the dollar because BOJ opposes the FRS before US inflation data

The exchange rate between the dollar and yen continues to fall. At the same time, on Thursday, BOJ’s employees expressed an opinion about the abolition of stimuli for the yen.

Board member Asahi Noguchi recently declared that the central bank can stop the stimulation if inflation is high. He said that the central bank will withdraw stimulus if the level of core inflation exceeds the expectation. 

On the other hand, the last Fed’s statements hint at a small rate hike, in case the U.S. central bank weakens the dollar.

The pair USDJPY will decrease if the U.S. core CPI changes in October. It is expected to decline from 5.1% to 5.0% year-on-year. This will happen if the BOJ plays against the FRS.

Traders working with the USDJPY pair pay attention to the index of business activity in the US manufacturing sector. The November index will be published by the Institute of Supply Management. It can be reduced from 50.2 to 49.8. The speech of central bank head Haruhiko Kuroda is also important.