Yen's Price Action Remains Neutral Ahead of Inflation Data Release

The Japanese yen has been stuck in neutral for the past four trading sessions, with USD/JPY posting only a 0.3% move.

This lack of direction is partly due to market expectations surrounding Japan's preliminary inflation figures, which were released today.

The Tokyo Core CPI, an indicator that measures underlying inflation in Tokyo while excluding food prices, was expected to slow down to 1.8%, down from the 1.9% recorded in July.

This trend has kept investors focused on inflationary pressures in Japan and how the Bank of Japan may respond over the coming months.