The Japanese Yen (JPY) strengthened against the US Dollar (USD) on Friday. The USD/JPY pair retreated from its recent gains as the Japanese Yen (JPY) strengthened following the release of the Tokyo Consumer Price Index (CPI) inflation data.

The data is expected to keep the Bank of Japan (BoJ) on track to raise interest rates in January

The headline Tokyo CPI inflation rose to 3.0% YoY in December, up from 2.6% in November.

Meanwhile, Tokyo CPI excluding Fresh Food and Energy rose to 2.4% YoY in December, compared to 2.2% in the previous month.

Tokyo CPI excluding Fresh Food also rose 2.4% YoY in December, slightly below the expected 2.5% but higher than the 2.2% recorded in November.

Source: FXStreet