Japanese Yen falls like house of cards as BoJ hike interest rates by 25 bps to 1.25%
The Japanese Yen (JPY) plunges against the US Dollar (USD) after the Bank of Japan’s (BoJ) monetary policy decision. As of writing, the USD/JPY pair surges to near 156.95.
The Japanese Yen (JPY) experienced a dramatic decline against the US Dollar (USD) following a decision by the Bank of Japan (BoJ) to raise interest rates by 25 basis points (bps) to 1.25%, the highest rate seen in 31 years. The USD/JPY pair surged to nearly 156.95. Analysts at Deutsche Bank noted that recent wage data reinforced the case for the BoJ to increase interest rates, following a previous hike three months ago.
The BoJ warned of potential inflation exceeding its 2% target, attributing the depreciation of the Yen to recent Yen selling pressure. Investors are now eagerly awaiting BoJ Governor Kazuo Ueda's press conference to gain fresh insights into the central bank's future policy tightening pace. The USD/JPY pair has been supported above the 20-period exponential moving average (EMA) at 156.51, suggesting a mild bullish bias.
However, a close under this level could weaken the current positive sentiment and trigger deeper retracements. USD/JPY is expected to remain under pressure until the BoJ Governor Ueda's press conference provides further cues on the monetary policy path.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
