Forex Today: Japanese Yen – a big loser; eyes turn to US CPI data

The Japanese Yen has been experiencing significant declines, with investor attention now shifting towards the upcoming US Consumer Price Index (CPI) data. This data is crucial as it reflects the state of inflation in the US and is likely to influence central bank policy decisions. The Yen's drop can be attributed to strong US economic indicators and the continued easing policies of the Bank of Japan. While a temporary rebound in the Yen may be observed, the overall trend remains bearish. Investors are closely monitoring how the currency market will react post-CPI announcement, particularly if inflation rates exceed expectations, which could further strengthen the US Dollar and increase selling pressure on the Yen.