USD/JPY faces pivotal week as BoJ rate hike, inflation data, and Trump’s policies loom. Key levels at 150 and 160 in focus amid market volatility.

The yen was poised for its strongest weekly performance in over a month as expectations grow that the Bank of Japan will raise rates next week, putting the dollar on the back foot ahead of Donald Trump's return to the White House.

Bank of Japan officials are likely to discuss raising their inflation outlook at a policy meeting later this month, although no rate decision has been made yet at this point, according to people familiar with the matter.

The Japanese Yen gains positive traction for the second straight day amid bets for a Bank of Japan rate hike. This has led to a risk-on mood that supports the JPY while helping USD/JPY to rebound from a multi-week low.