The USD/JPY currency pair traded lower as intra-day market conditions reflected caution after Bank of Japan Governor Ueda emphasized the need for vigilance over food inflation risks. In April, Japan’s core inflation reached 3.5%, reflecting the fastest annual increase in over two years, driven primarily by a notable surge in food costs. Traders are closely observing these inflation trends as they assess future monetary policy adjustments. The Bank of Japan’s response to these pressures will remain a key factor in shaping the direction of the yen moving forward.