USD/JPY faces pivotal week as BoJ rate hike, inflation data, and Trump’s policies loom. Key levels at 150 and 160 in focus amid market volatility.
The Japanese Yen gains positive traction for the second straight day amid bets for a Bank of Japan rate hike. This has led to a risk-on mood that supports the JPY while helping USD/JPY to rebound from a multi-week low.
Global markets await BoJ decision and Trump’s policies. USD/JPY and AUD/USD trends hinge on central bank moves and macroeconomic shifts.
The USD/JPY exchange rate has hovered at its highest level since July 17, after the latest Japanese wage income data. The pair, which is the third most popular forex cross, traded at 158.05, up by 13.
The U.S. dollar weakened against the yen on Thursday, as softer-than-expected U.S. economic data and growing confidence for a Bank of Japan interest-rate hike sent it tumbling to a near one-month low against the Japanese currency.
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The USD/JPY climbed on Friday as the Japanese yen weakened, with markets focused on the upcoming BoJ rate decision. The BoJs next rate hike is now anticipated at the January Monetary Policy Meeting, moving up from
Persistent USD strength against JPY seen in Q4 '24 is easing. Hawkish speeches from BoJ officials coupled with a softer US core CPI print put an interim ceiling on USD strength against JPY.
Looking back, yen-funded carry trades have turned out to be among the most profitable plays this year. Of 20 major emerging markets currencies, all generated positive total returns, led by the Turkish lira’s 19% and Mexican peso’s 14%.
Japanese bond yields are rising due to inflation concerns, fiscal deficits, and global bond sell-offs. Check out what to expect from the upcoming BOJ meeting.
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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances.