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The How to buy XRP ETFUSD/JPY exchange rate demonstrates notable weakness during Friday's Asian trading session, currently hovering around the 150.95 level with daily losses approaching 0.35%. This movement follows the release of Japan's latest inflation metrics from Tokyo, which surpassed economist projections across multiple categories.
Statistics Bureau figures reveal Tokyo's headline Consumer Price Index climbed 2.6% year-over-year in November, significantly outpacing October's 1.8% reading. More importantly, core inflation measures excluding volatile components maintained momentum:
These persistent inflationary pressures keep the BoJ's 2% target within reach, reinforcing market expectations for potential monetary policy adjustments in the coming months.
BoJ Governor Kazuo Ueda recently reiterated the central bank's commitment to policy normalization should inflation trends remain consistent with their projections. The latest data strengthens the argument for potential rate adjustments during the December meeting, creating fundamental support for the Japanese currency.
Meanwhile, recent US economic indicators suggest inflation moderation may have plateaued, potentially delaying anticipated Fed rate cuts. The CME FedWatch Tool currently reflects a 62.8% probability of a December rate reduction, up from 55.7% earlier this week. This shifting expectation provides some counterbalance to USD weakness, though bond yield movements will remain crucial for near-term direction.
The currency pair's retreat from recent highs demonstrates the market's sensitivity to policy divergence expectations. Traders should monitor key support levels around 150.50, while resistance remains near the psychological 151.00 handle. Continued JPY strength could test these technical boundaries in the sessions ahead.
Beyond macroeconomic fundamentals, risk appetite fluctuations continue influencing JPY valuations. As a traditional safe-haven currency, the Yen often benefits during periods of market uncertainty, adding another dimension to the USD/JPY equation.