Japanese Yen: Focus shifts to BoJ path – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret note that the Japanese Yen (JPY) is slightly softer versus the US Dollar (USD), with USD/JPY trading between 158.00 support and resistance in the upper‑159s.
Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Japanese Yen (JPY) has weakened against the US Dollar (USD), with the USD/JPY pair trading between 158.00 support and the upper 159s. As the market shifts focus from past interventions towards fundamentals ahead of the September 18 Bank of Japan (BoJ) meeting, where tightening of roughly 20 basis points is priced, there is potential for near-term strength in the JPY.
The JPY has shown a slight decline of 0.1% versus the USD and is performing moderately among G10 currencies as we approach Monday's session. The market narrative is transitioning from official interventions that dominated the summer to a focus on fundamentals ahead of the BoJ meeting. Policymakers must carefully manage expectations for the rate path into the year's end and beyond into early 2027.
USD/JPY price action has been relatively subdued, with the pair bound between 158.00 support and the upper 159s.
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