During the past week, Haruhiko Kuroda, the Governor of the Bank of Japan (BoJ), stated that there is a very high possibility that the Bank of Japan will reverse its negative interest rate policy by the end of this year. This move aims to bring inflation back to the 2% annual target and strengthen the yen.

USD/JPY may see further upward adjustments due to positive economic data coming from the United States, which would keep the U.S. dollar strong. The yield on 10-year U.S. Treasury bonds has risen to 4.29%, making it an attractive investment, and it remains another factor that would help increase demand for the U.S. dollar.

However, investors should exercise caution as the announcement of the U.S. Consumer Price Index (CPI) is scheduled for tomorrow. Market expectations suggest that the CPI will increase by 0.5% (MoM) from the previous 0.2%, with Core CPI predicted to be at 0.2% (MoM). These forecasts are in line with the previous month.