USD/JPY Sluggish Rebounds Ahead Amid Interest Rate Tug-of-War

The USD/JPY pair is expected to experience sluggish rebounds due to the ongoing tug-of-war between upward pressure on the dollar and downward pressure on the yen. This dynamic is driven by interest rate differentials, which favor the dollar. However, caution against excessive yen weakness suggests that any potential gains for the dollar may be limited.

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