Recent data shows that Japan’s core inflation unexpectedly rose to 3.5%, marking the highest level in two years. This significant increase strengthens the argument for potential future rate hikes by the Japanese central bank. Interestingly, despite Bank of Japan Governor Kazuo Ueda’s hawkish statements, the yen continues to weaken. Traders and analysts will be closely monitoring this situation as they adjust their strategies amidst these developments. The interplay between interest rates and currency strength is critical as the market reacts to this inflation news.