The Japanese yen (JPY) has received support from the narrowing interest rate differential between the United States and Japan through the implementation of Yield Curve Control. Investors also anticipate that the Bank of Japan (BoJ) will likely unwind this negative interest rate policy in the first 2-3 months of 2024.

BoJ Governor Kazuo Ueda stated last week that Japan is making progress towards achieving a sustainable 2% inflation target, and the central bank doesn't necessarily need to wait for actual wage growth to turn positive again before ending this negative interest rate.

The FOMC meeting minutes indicate that policymakers continue to support these elevated interest rates to prolong inflation control. Investors believe that the Federal Reserve might initiate its first rate cut in the FOMC meeting between April 30th and May 1st. Additionally, the yields on 10-year US government bonds remain attractive.

The USD/JPY trend continues to be bearish. Furthermore, investors remain interested in economic indicators from the United States, such as claims for unemployment benefits, the number of retail orders, and the University of Michigan Consumer Confidence Index, which could positively impact the dollar.