Yen's Future Uncertain as BOJ Policy Hints Emerge

The USD/JPY pair experienced volatility as weak Japanese GDP data raised concerns about a potential recession and dampened hopes for a Bank of Japan (BOJ) policy shift. The BOJ is expected to maintain its cautious stance on tightening monetary policy despite high inflation levels. The market does not anticipate any major changes from the BOJ's December meeting. The focus will shift to US economic data, particularly inflation, which could further strengthen the US dollar. The USD/JPY pair faces key support levels, and a breach of the longer-term channel support zone may confirm a downside bias. Retail traders are currently net short on USD/JPY.