• The Japanese Yen appreciates following the speech from the BoJ Governor Kazuo Ueda.
• Japan’s National CPI rose by 2.8% YoY in July, remaining at its highest level since February.
• Fed Chair Powell may deliver a statement about the possibility of rate cuts at the Jackson Hole Symposium.

The Japanese Yen (JPY) strengthens against the US Dollar (USD) following the release of the National Consumer Price Index (CPI) inflation data and a speech by Bank of Japan (BoJ) Governor Kazuo Ueda in Parliament on Friday. Ueda stated that "the BoJ raised rates in July as the economy and inflation moved largely in line with forecasts."

BoJ Governor Ueda also indicated that there would be no change in the stance on adjusting monetary easing if the economy and inflation continue to align with forecasts. Ueda noted that recent BoJ policy decisions have been appropriate and warned that outlining the future policy path could lead to unnecessary speculation.

Read more about BoJ Ueda’s speech: Central bank raised rates in July as economy, inflation moved mostly in line with forecast

The USD/JPY pair depreciates as the US Dollar receives downward pressure from lower Treasury yields. However, the Greenback gained ground following the mixed S&P Global Purchasing Managers Index (PMI) data released on Thursday.

Furthermore, the US Federal Reserve (Fed) Chair Jerome Powell is set to speak at the Jackson Hole Symposium later on Friday. Powell may deliver a statement about the possibility of interest rate cuts in the United States (US), which is highly anticipated by market participants.