USD/JPY declines as Yen strengthens on BoJ hike bets and weak US jobs data

The Japanese Yen has strengthened against the US Dollar, leading to a decline in USD/JPY. This movement follows the release of delayed Nonfarm Payrolls (NFP) reports for October and November, which fell short of market expectations, putting the US Dollar under pressure. Concerns about deflation have also contributed to this weakening. In parallel, the potential for a Bank of Japan (BoJ) interest rate hike has provided support for the Yen. Investors are increasingly optimistic about the BoJ changing its policy stance, which could lead to an increase in interest rates and further strengthen the Yen. Consequently, the bullish sentiment around USD/JPY has reversed, and a downward trend has taken hold. Market attention is now focused on upcoming employment data and further developments in Japan's monetary policy.