Bank of Japan Governor Kazuo Ueda stated that core inflation, excluding food and energy prices, remains below 2%. This suggests that the central bank is likely to maintain its accommodative monetary policy to support inflation.

Meanwhile, inflation in Tokyo rose in January, leading investors to increase expectations that the Bank of Japan may adopt a tighter policy stance, which could help the yen strengthen again.

However, uncertainty surrounding U.S. President Donald Trump's policies has directly pressured the yen. Additionally, investors are eagerly awaiting the release of the U.S. Personal Consumption Expenditures (PCE) data, which is set to be announced soon.

Source: Fxstreet