Asia FX subdued amid thin volumes; traders weigh Tokyo CPI for BOJ outlook

"The Asian FX market remains subdued ahead of the Tokyo CPI release, as traders evaluate its potential impact on the BOJ's policy stance. The current thin volumes indicate that market participants are hesitant to take positions. Should the Tokyo CPI rise unexpectedly, it could lead the BOJ to adopt a more hawkish outlook, significantly influencing the yen. Conversely, a lower-than-expected CPI might allow the BOJ to maintain its ultra-loose monetary policy, which could result in further yen depreciation. Given these factors, short-term volatility is likely in the market."