Japanese Yen: Policy risks support gains against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret observe USD/JPY trading near 159, with modest Japanese Yen (JPY) gains offering reassurance to the Ministry of Finance (MoF) after recent weakness.
The Japanese Yen (JPY) has shown modest gains against the US Dollar (USD), trading near 159, according to Scotiabank strategists Shaun Osborne and Eric Theoret. The Bank of Japan (BoJ) and the Federal Reserve (Fed) have been working together to counteract Yen depreciation, leading to reassurance among key officials at the Ministry of Finance (MoF).
The BoJ is expected to consider a potential rate hike in the fall, and the release of Q2 GDP data early next week adds near-term domestic risk. Support is noted just above 158.50, while resistance is seen above 159.50. The Yen is up 0.2% against the USD and has been outperforming most G10 currencies. Overall, market participants remain attentive to policymakers' comments on their plans for near-term tightening.
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