USD/JPY Climbs Toward 144.00 as Yen Weakens Despite Hawkish BoJ Comments

USD/JPY Climbs Toward 144.00 as Yen Weakens Despite Hawkish BoJ Comments

The USD/JPY pair is gaining momentum, climbing toward the 144.00 mark on Tuesday, as the Japanese Yen (JPY) weakens despite hawkish commentary from the Bank of Japan (BoJ). The pair has risen nearly 1.20% on the day, building on modest gains from Monday, and is now eyeing the next technical resistance at 144.50.

Earlier in the session, the Japanese Yen had reached a four-week high of 142.11 before reversing course. The retreat comes even after BoJ Governor Kazuo Ueda issued a warning that food inflation may drive underlying inflation above the central bank’s 2% target. His remarks suggested a more aggressive stance from the BoJ, but the market appears to be giving more weight to broader macroeconomic themes, including easing trade tensions and renewed strength in the US Dollar.

Supporting the move was the release of Japan’s Corporate Service Price Index (CSPI), which rose 3.1% year-on-year in April—slightly below the upwardly revised 3.3% in March. While the moderation was minor, it still reflects persistent cost pressures in the Japanese service sector.

Attention also remains on Japan’s core CPI, which surged to 3.5% in April, its highest level in nearly two years. The upside surprise has intensified speculation over a potential policy shift by the BoJ later this year. However, for now, USD demand continues to dominate, particularly as global investors respond to improved sentiment around trade and reduced market volatility.