Japanese Yen: Volatility watch over autumn holidays – MUFG
MUFG’s Teppei Ino reviews recent USD/JPY price action, noting the pair opened near 153.41 before US Dollar (USD) buying ahead of the Federal Open Market Committee (FOMC) and Bank of Japan (BoJ) meetings lifted it above 157.50.
The Japanese Yen (JPY) experienced volatility leading into the autumn holidays, according to MUFG analyst Teppei Ino. USD/JPY opened near 153.41 and climbed to above 157.50 due to expectations of a hawkish Federal Open Market Committee (FOMC) and dissenting votes from the Bank of Japan (BoJ). A weaker-than-expected August Consumer Price Index (CPI) data also contributed to the Yen's decline against the Dollar.
The USD/JPY initially faltered near 155 but recovered to above 156 following a hawkish FOMC meeting. However, it retreated to below 155.50 on September 17 due to lower crude oil prices. The BoJ raised rates by 25bp as anticipated, but the Yen suffered a sell-off when two BoJ policy board members opposed the decision, pushing USD/JPY above 157.
The Bank of Japan's policy rate hike, combined with two dissenting votes, intensified the Yen's weakness. The article was crafted based on AI-generated insights reviewed by a human editor.
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