• The Japanese Yen continues to draw support from expectations for a hawkish BoJ pivot.
• Bets for a June Fed rate cut undermine the USD and further exert pressure on USD/JPY.
• An upward revision of Japan’s Q4 GDP print contributes to the offered tone on Monday.

The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance. Moreover, investors seem convinced that another substantial pay hike in Japan will fuel demand-driven inflationary pressure and allow the BoJ to end the negative interest rates as early as the March 18-19 meeting. This, along with an upward revision of Japan's fourth-quarter GDP print, underpins the JPY and keeps the USD/JPY pair depressed through the Asian session on Monday.

Meanwhile, the US employment report for February reaffirmed expectations that the Federal Reserve (Fed) will start cutting interest rates in June and continues to weigh on the US Dollar (USD). This turns out to be another factor that contributes to the offered tone surrounding the USD/JPY pair for the sixth straight day and supports prospects for a further depreciating move. The market focus now shifts to the US consumer inflation figures, due for release on Tuesday. Nevertheless, the fundamental backdrop suggests that the path of least resistance for spot prices is to the downside.