• USD/JPY attracts some buyers and snaps a four-day losing streak to an over two-week low.
• The divergent BoJ-Fed policy expectations keep a lid on any meaningful gains for the pair.
• Traders keenly await the release of the US CPI report before placing fresh directional bets.

The USD/JPY pair gains some positive traction during the Asian session on Friday and moves away from an over two-week low, around the 152.30-152.25 region, touched the previous day. Spot prices, however, lack bullish conviction and currently trade and remain below the 153.00 mark amid mixed cues.

Investors remain hopeful that Japan's Prime Minister Sanae  Takaichi could be more fiscally responsible and that her policies will boost the economy. This might prompt the Bank of Japan (BoJ) to stick to its policy normalization path, which, along with the risk-off impulse, acts as a tailwind for the safe-haven Japanese Yen (JPY). The US Dollar (USD), on the other hand, continues with its struggle to attract buyers and keep a lid on the USD/JPY pair’s uptick.

Market players trimmed their bets for another interest rate cut by the US Federal Reserve (Fed) in March following the release of the blowout US Nonfarm Payrolls (NFP) report on Wednesday. The current market pricing, however, indicates a greater chance of at least two 25 bps Fed rate cuts in 2026. Adding to this, threats to the US central bank's independence keep the USD within striking distance of the weekly low and contribute to capping the USD/JPY pair.

Traders also seem reluctant and opt to wait for more cues about the Fed's rate-cut path before positioning for the next leg of a directional move. Hence, the focus will remain glued to the release of the latest US consumer inflation figures, due later during the North American session. Nevertheless, the USD/JPY pair seems poised to register heavy weekly losses, and the divergent BoJ-Fed expectations back the case for a further near-term depreciating move.