The USD/JPY pair is currently in a consolidation phase, awaiting market developments.

On Tuesday, the Japanese yen, paired with the US dollar, experienced a modest strengthening. The current exchange rate for USD/JPY stands at 147.40.

The morning brought the release of employment market statistics in Japan, surpassing expectations and reinforcing the anticipation of the Bank of Japan tightening monetary conditions in the future.

In December, the unemployment rate in Japan dropped from 2.5% to 2.4%.

Attention is now turning towards upcoming reports on retail sales, industrial production, and consumer confidence scheduled for later this week.

Earlier, the yen saw a slight uptick when Bank of Japan Governor Kazuo Ueda didn't dismiss the possibility of sustained inflation reaching 2%, contingent on a rise in wages. In such a scenario, the Bank of Japan may reconsider its extensive stimulus program.

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