The USD/JPY pair remains under downward pressure.

The Japanese yen, in tandem with the US dollar, exhibits resilience on Monday, with the current USD/JPY exchange rate holding at 142.19.

All eyes are now on the upcoming December meeting of the Bank of Japan scheduled for this Tuesday. While monetary policy is expected to remain unchanged, there is a lively discussion among investors about the potential for a hawkish shift in 2024. The current condition of Japan's economy doesn't necessarily warrant alterations in the BoJ’s monetary policy framework. However, uncertainties persist, with economic indicators pointing to a fragile state marked by declining inflation.

The most likely scenario involves a change in rhetoric by April.

In addition to the evident factors and macroeconomic indicators, the Bank of Japan is keeping a close eye on wage parameters, a crucial aspect to monitor.

New nuances in monetary comments are expected to emerge as early as tomorrow, signaling a gradual shift towards a spring reversal in fiscal trends.

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