A final batch of data ahead of the December policy meetings may sway reluctant yen buyers.

The pair is hovering near its daily cloud top, even as market expectations for a Fed rate cut rose to 87% following the reported increase in the U.S. unemployment rate in November.

The broad decline in Treasury yields following a relatively neutral U.S. jobs report suggests markets are more concerned about slowing growth than rising inflation.

This sentiment will be tested by data releases next week. Analysts forecast U.S. headline CPI at 2.7% and core CPI at 3.3% annually, both above the Fed's 2% target. This will be the final inflation reading before the Fed's policy meeting on December 17-18.

Japan will report its Q3 GDP final, November corporate goods prices, and the Q4 Tankan report, which may solidify the outlook for the Bank of Japan's meeting on December 18-19. Odds are slightly in favor of a 25 basis point BOJ hike, although expectations have been easing recently due to speculation about a possible delay in tightening.

Unless next week’s Japan data disappoints, a stronger yen is likely to be favored, driven by ongoing concerns about global growth.

AUD/JPY, a gauge of global growth sentiment, is testing the lower end of an expanding Bollinger Band at 95.69 ahead of the Reserve Bank of Australia's meeting on Tuesday. The risk for yen buyers is that global growth concerns start to impact BOJ policy expectations, though this has not yet been the case. For more click on

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(Robert Fullem is a Reuters market analyst. The views expressed are his own.)

((robert.fullem@thomsonreuters.com;))