The yen strengthened on Friday, with one closing report showing USD/JPY down about 0.83% to roughly 156.81 as the currency reached a one-month high on haven demand. Other quotes sat in a 156.8–156.95 range. Japan’s September national CPI, released earlier in the week, showed headline inflation at 2.1% year on year, up from 1.9%, with the core measure at 2.1% from 1.7%.
The calendar now matters more than the level. Tokyo CPI for October is due Thursday 29 October; the September reading was 2.7% headline, according to Newsquawk. The Bank of Japan decides on Friday 30 October. Sources disagree on expectations: one broker preview expects a hold at 1.25% with hike odds under 5%, while another cites markets pricing about an 80% chance of a hike by December. Treat October as a hold-likely meeting where the wording of the inflation assessment and the Outlook Report carry the signal.
The yen’s role in risk-off episodes is covered in safe-haven currencies explained. With the Fed and ECB also reporting before the BoJ, yen pairs could see sharp, two-way moves this week.
Educational commentary only; not a trade recommendation. Quoted levels vary by source.