Tokyo CPI Surprise Boosts Japanese Yen Ahead of US Jobs Data

The Japanese Yen (JPY) firmed up on Friday after stronger-than-expected Tokyo Consumer Price Index (CPI) data was released. The reading showed an acceleration in inflation, which added to the JPY's appeal and put downward pressure on the USD/JPY pair.

This move comes as market participants are on high alert due to speculation that Japanese authorities may intervene again to bolster the currency. This intervention risk is also contributing to the JPY's gains and limiting losses in the USD/JPY pair.

The US Dollar (USD) continues to show resilience, despite fading expectations for a Federal Reserve rate hike in October. The persistent geopolitical uncertainty and concerns about inflation driven by volatile energy prices are keeping the safe-haven USD supported close to its strongest levels since March 2025.