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.

SINGAPORE--The yen was poised on Friday 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.

Ueda stated that the timing of interest rate hikes will largely depend on the economic policies of the new U.S. administration and the progress of this year’s wage negotiations in Japan. The yen's USD/JPY pair fell 0.4% on Wednesday, meaning the yen strengthened 0.4% against the U.S. dollar.