Japanese Yen gains against US Dollar as markets brace for a more aggressive BoJ
USD/JPY declines 0.39% on Wednesday and trades around 153.40 at the time of writing. The Japanese Yen (JPY) benefits from renewed demand as investors increase their bets on further monetary tightening by the Bank of Japan (BoJ).
The Japanese Yen has strengthened against the US Dollar as investors anticipate a more aggressive monetary policy from the Bank of Japan (BoJ). The USD/JPY pair dropped 0.39% on Wednesday, trading near 153.40. The BoJ is expected to raise its policy rate by 25 basis points at its September meeting, potentially reaching 1.25%, which would be the highest level in over three decades.
This move follows a June rate hike. BoJ board member Hajime Takata has hinted at a more aggressive stance, suggesting that consecutive rate hikes are on the table. Meanwhile, US markets focus on upcoming inflation data from the Producer Price Index and Consumer Price Index, which could influence the Federal Reserve's monetary policy path and USD/JPY rates.
Currently, there is a 62% chance of a Fed rate hike at the September meeting, according to the CME FedWatch Tool. Throughout the day, USD/JPY traded at 153.37, hovering below key support levels and showing bearish momentum. Technical analysis indicates support at 152.89 and resistance at 154.40, with the 200-period SMA at 157.26 reinforcing the overall downtrend.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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