• The Japanese Yen continues losing ground amid the BoJ rate-hike uncertainty.
• The bullish USD contributes to the USD/JPY pair’s move-up to a multi-month top.
• The JPY bears shrug off the possibility of an intervention by Japanese authorities.

The Japanese Yen (JPY) remains on the back foot against its American counterpart for the fourth consecutive session as of Thursday and slides to the lowest level since July 24 during the Asian session.  Although Japan's Producer Price Index (PPI) rose by the fastest annual pace in more than a year during October, investors seem convinced that the domestic political uncertainty will make it difficult for the Bank of Japan (BoJ) to hike interest rates again. Apart from this, growing concerns over the possibility that US President-elect Donald Trump will impose high tariffs and their impact on the Japanese economy continue to undermine the JPY.

Meanwhile, expectations that expansionary policies from the incoming Trump administration could stimulate inflation keep the US Treasury bond yields elevated near a multi-month top, which further seems to undermine the lower-yielding JPY. Adding to this, the continuation of the so-called Trump trade lifts the US Dollar (USD) to its highest level since November 2023 and acts as a tailwind for the USD/JPY pair. That said, intervention fears could limit the JPY losses. This, along with bets for another 25-basis-points (bps) rate cut by the Federal Reserve (Fed) in December, bolstered by the US inflation data on Wednesday, might cap the pair.