The USD/JPY pair is showing little movement, staying within a narrow trading range.
The Japanese yen, when paired with the US dollar, is firmly stuck in a sideways trend. The current USD/JPY exchange rate is at 148.07.
Given the yen's usual volatility, this current state of stability is unexpected.
The currency market is experiencing a period of consolidation, with the US dollar holding steady ahead of the upcoming Federal Reserve meeting. The meeting, beginning on Tuesday and concluding on Wednesday with an interest rate decision, will significantly influence market sentiment for the coming weeks.
In January, core inflation in Tokyo, a leading indicator for the official Consumer Price Index (CPI), dropped to 1.6% year-on-year, compared to 2.1% the previous month, a more significant decline than anticipated.