Today's data precedes Thursday's highly anticipated BoJ monetary policy decision. Markets expect the BoJ to leave rates at 0.25%, making forward guidance crucial for USD/JPY price trends. With imports sliding in November, the BoJ will likely await further wages, household spending, and inflation data before signaling any rate hikes.
A Ueda Yagi Tanshi brokerage poll found that 91% of participants expect rates to hold steady this week, while 95% anticipate a BoJ hike within three months.
Global Markets Invest commented on the BoJ rate path outlook, stating,
"The BoJ has hiked rates twice so far this year, and the market is pricing in an over 30% chance of another hike next week and a 90% probability of a raise by the end of March."
Turning our focus to the US session, the Fed interest rate decision, FOMC Economic Projections, and Press Conference will impact USD/JPY trends. Markets expect the Fed to cut rates by 25 basis points, placing greater weight on FOMC projections.