The Japanese yen made strides towards 155.5 per US dollar on Thursday, continuing its upward momentum from the prior session. This movement came as the US dollar depreciated notably, following the Federal Reserve's third interest rate cut of the year and its communication of a less aggressive stance than markets had projected. Market participants are also closely monitoring the Bank of Japan's upcoming policy meeting next week, where a rate increase is anticipated following Governor Kazuo Ueda's remarks that the central bank is nearing its inflation goals. Ueda’s comments post-meeting will be scrutinized to glean insights into the bank's policy direction for 2026. However, despite recent gains, the yen is still under pressure due to Japan's sluggish economic growth, persistent fiscal issues, and significant interest rate differentials with other leading economies, as Japan maintains some of the lowest interest rates globally. On the economic data front, business sentiment among large manufacturers reached a one-year high in the three months ending in December.