Japanese Yen: JPY underperforms into BoJ – Scotiabank

Scotiabank analysts Shaun Osborne and Eric Theoret have noted a weaker Japanese Yen (JPY), which has fallen 0.7% against the US Dollar (USD) and is underperforming compared to other G10 currencies, along with the New Zealand Dollar (NZD) and Swedish Krona (SEK). As markets anticipate Friday's Bank of Japan (BoJ) meeting, where a rate hike is seen as fully priced, the yen continues to lag.

Recent lows for USD/JPY are around 153, with additional support near 152 and resistance above 155. The analysts expect traders and investors to focus on factors beyond sentiment, as the BoJ meeting is highly anticipated. Limited fundamental releases have been issued thus far, but the upcoming trade and Consumer Price Index (CPI) data on Friday could provide further insight.

USD/JPY is currently trading around 153, with support at 152 noted. Despite some buying interest early in the week, the pair has remained in a range around the 154.00 mark, nearing a nearly seven-month low. Gold prices have been on a downward trend, nearing multi-week lows, driven by the US Dollar's strength and increased US Treasury yields, alongside speculation of a potential Fed rate hike and rising oil prices. Bitcoin has edged higher, trading near $77,884, alongside other cryptocurrencies gaining broadly.