Japan’s National Consumer Price Index, which excludes food and energy, dropped slightly from 3% to 2.9% year-on-year in December. This small change might reflect shifts in the country’s economy. Gold prices are on the rise, hitting record highs over $4,950. This increase is fueled by geopolitical uncertainties and expectations of more policy easing from the Federal Reserve.

Ethereum Market Momentum

After the Fusaka upgrade, Ethereum saw a boost in activity, with lower fees and more transactions. However, analysts warn that this growth may not last. Recent economic trends involving the EUR/USD and GBP/USD reveal changes linked to risk sentiment and currency movements. Both pairings have fluctuated due to trade tensions and the US Dollar’s performance. Ripple (XRP) is currently holding steady above the critical support level of $1.90 amid market volatility. There is cautious optimism as ETFs are seeing inflows, even as retail investors remain wary. All market information carries risks, and market movement profiles are meant for informational purposes only. Readers should conduct thorough research before making any financial decisions.

Implications for the Yen

The small decline in Japan’s core inflation to 2.9% for December 2025 brings uncertainty for the yen. This information might lead the Bank of Japan to pause its recent policy adjustments, making future decisions less predictable. We should explore options strategies on USD/JPY to potentially profit from increased volatility in the coming weeks. This Japanese data fits into a larger trend of a weakening US Dollar, which has pushed EUR/USD toward 1.1800. The dollar’s decline is driven by strong market expectations for more Federal Reserve rate cuts this year. This view grew stronger after last month’s US CPI report showed core inflation easing to 3.1%. We should continue using futures to maintain short-dollar positions against a range of major currencies. Geopolitical risks and the falling dollar have lifted gold to new heights above $4,950. Historically, gold performs well in times of falling real interest rates, which we have seen since the Fed began hinting at policy easing in late 2025. Given current market conditions, buying call options might be a smart way to stay invested in gold while managing our risks. The crypto market is experiencing its own trends. There is skepticism about whether the activity surge after Ethereum’s Fusaka upgrade can be sustained. Meanwhile, XRP remains solid above the $1.90 support level despite broader market caution. For now, this appears to be a better environment for range-trading specific assets rather than a full market rally. Create your live VT Markets account and start trading now.

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