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The USD/JPY pair rises to around 155.60 during the early Asian session on Thursday. The US Dollar (USD) edges higher against the Japanese Yen (JPY) on the cautious comments from Federal Reserve (Fed) Governor Christopher Waller. Traders will keep an eye on the US Consumer Price Index (CPI) inflation data for November, which will be released later on Thursday.

The Fed’s Waller said on Wednesday the US central bank is not in a rush to cut the interest rates. His remarks could provide some support to the Greenback in the near term.  Markets anticipate two rate cuts next year. Fed funds futures are pricing an implied 75.6% chance of a hold in rates at the US central bank's next meeting in January, up from nearly 70% a week ago, according to the CME FedWatch tool.

On the other hand, growing acceptance that the Bank of Japan (BoJ) will raise interest rates could boost the JPY and create a headwind for the pair. The BoJ is anticipated to raise interest rates to 0.75% from 0.5% at a two-day policy meeting ending on Friday. This move would bring the benchmark rate to a three-decade high.

BoJ Governor Kazuo Ueda reiterated last week that the likelihood of the central bank's baseline economic and price outlook materializing had been gradually increasing. Ueda added that the Japanese central bank is getting closer to attaining its inflation target.

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