The Japanese Yen struggles to register any recovery amid dovish BoJ expectations.
The lack of action by Japanese authorities and softer Tokyo CPI also exert pressure.
Traders keenly await the crucial BoJ decision ahead of the US PCE Price Index data.
The Japanese Yen (JPY) languishes near a multi-decade low against its American counterpart during the Asian session on Friday as traders keenly await the outcome of the highly-anticipated Bank of Japan (BoJ) policy meeting. After the historic decision in March to raise short-term interest rates for the first time in 17 years, the central bank is widely expected to leave policy settings and bond purchase amounts unchanged amid signs that inflation in Japan is cooling. This puts the market focus squarely on the quarterly inflation and growth forecasts, which will play a key role in influencing the near-term JPY price dynamics.
In the meantime, the lack of any decisive action by Japanese authorities to support the domestic currency fails to provide any respite to the JPY bulls. Meanwhile, the US Dollar (USD) hangs near a two-week low touched on Thursday in reaction to data showing a sharp slowdown in the US economic growth, which, in turn, caps the upside for the USD/JPY pair. That said, an unwelcome pickup in inflation reaffirmed market bets that the Federal Reserve (Fed) will keep interest rates higher for longer, which should act as a tailwind for the currency pair ahead of the US Personal Consumption Expenditures (PCE) Price Index.
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