Japanese Yen: Choppy trade after JPY-supportive comments – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret have noted the Japanese Yen (JPY) as slightly stronger, with USD/JPY sliding from the upper 158s region following comments from Bank of Japan Governor Ueda and Prime Minister Takaichi regarding close US-Japan FX coordination. They describe the JPY as choppy, highlighting potential resistance from officials against consecutive interest rate hikes, and indicating a neutral market momentum.

Support is seen around the 157.75 level, with limited incentive for USD to retest the 160 mark. The JPY showed strength in the session, outperforming most other major currencies, with spot gains from the upper 158 region. However, the market adjustment to various reports has made the trading choppy. BoJ Governor Ueda and Prime Minister Takaichi's comments on an open US-Japan communication channel supported the Yen's rebound, though additional reports indicated that BoJ officials are hesitant about a back-to-back interest rate increase this month.

Neutral momentum in the spot suggests that significant downside risk in the USD is not yet evident. Daily trend momentum remains neutral, implying little motivation for the USD to push higher and retest the 160 area currently. Support is currently at 157.75. This report is based on material provided by an AI tool and reviewed by an editor.