USD/JPY: Japan flash PMI steady at 52.3, keeps BoJ December hike in play

The source reports no USD/JPY price move, pip figure or technical levels. Japan's flash PMI held at 52.3, with gains in services offsetting a slowdown in manufacturing ahead of the Bank of Japan's policy decision. The survey gives the BoJ a mixed but broadly workable backdrop. Steady growth and persistent cost pressures support further policy normalisation, while weaker hiring and softer demand argue for a gradual pace of tightening. The PMI follows this morning's core-core CPI reading, which came in above forecast. Taken alone, the PMI data are unlikely to shift yen expectations much. In the JGB market, solid activity combined with sticky input costs is consistent with traders keeping a December BoJ rate hike in play. For USD/JPY traders, the data reinforce the case for continued, gradual BoJ normalisation rather than signalling a change in pace. Focus remains on the upcoming BoJ decision for clearer direction on the yen.