Japanese Yen remains on the front foot vs weak USD after hawkish BoJ Minutes

The USD/JPY currency pair is struggling to build on its recent gains, as traders await a decisive move below 158.00 to position for further losses. Minutes from the Bank of Japan's September meeting indicate policymakers' consensus to continue raising interest rates and adjust monetary easing, which has bolstered the Japanese Yen.

The US Dollar's decline has been fueled by Democrats' control of Congress, concerns over fiscal gridlock, and the prospect of an end to the Iran war, leading to a drop in crude oil prices and lower US bond yields. Despite hawkish Federal Reserve expectations, which might support the US Dollar, the upcoming US Nonfarm Payrolls report on Friday will likely drive USD demand.

While the USD/JPY pair remains bearish in the short term, a daily close above the 200-day Simple Moving Average at 158.65 could indicate a shift in momentum and open the door to a recovery. For now, any recovery in the USD/JPY pair is likely to face selling pressure as Japanese authorities may step in to support the domestic currency.