Tokyo's inflation data, set for release on November 28, 2025, is poised to influence the Bank of Japan's policy decisions ahead of its December 18–19 meeting. This report is expected to affect rate-hike expectations and could lead to volatility in USD/JPY and Japanese government bonds, particularly in a market thinned by holiday trading. A stronger-than-anticipated inflation reading, especially in the services sector, may bolster the yen and tighten funding conditions, while a weaker result could push potential rate hikes into 2026.