USD/JPY traded in a narrow band on Friday, with quotes around 156.57 to 156.87 depending on the source. One data provider showed the pair about 0.06% higher on the day, another about 0.17% higher by midday. The move was small, but the yen has been one of the more closely watched currencies this week.
Japan's core consumer price inflation was reported at 2.1%, up from 1.7%, and the manufacturing PMI slowed to 53.3. Firmer inflation supports the argument that the Bank of Japan has room to tighten further. The central bank announces its decision on Friday, October 30, alongside Tokyo CPI and unemployment data.
On the other side of the pair, US Treasury yields fell sharply on Thursday, with the 10-year reported down about 16.6 basis points to 4.953% and the 2-year down about 16.7 basis points to 4.639%. A narrower rate gap tends to favour the yen, though USD/JPY did not extend much on Friday. Analyst notes cited support near 155.78 and 155.40.
The week ahead is crowded: the Bank of Canada on Wednesday, then the Fed and ECB on Thursday, then the BoJ. Pairs with the yen can move sharply when several decisions arrive back to back, so many traders reduce size or stand aside around the releases. For background, see safe-haven currencies explained. This is commentary only, not a trade recommendation.