{
  "id": 12259536,
  "title": "The Japanese Yen firms on a BoJ speech about AI and gives it all back",
  "url": "https://urgent.news/2026/10/05/the-japanese-yen-firms-on-a-boj-speech-about-ai-and-gives-it-all-back",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T23:30:00.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/the-japanese-yen-firms-on-a-boj-speech-about-ai-and-gives-it-all-back-202610052330"
  },
  "original_language": "en",
  "account": "The Japanese Yen (JPY) strengthened following Bank of Japan (BoJ) Governor Ueda's speech on Tuesday, only to reverse its gains shortly after. Traders had previously given a 25% chance of a BoJ rate hike in October, and USD/JPY reached 158.00 in both directions over the past three trading sessions, trading just under this level. BoJ Deputy Governor Uchida highlighted that artificial intelligence (AI) is a significant demand shock driving up activity and prices. He also mentioned that AI has made financial conditions more accommodative, despite the BoJ having raised rates in June and September. The BoJ's rate hike in June and September led traders to interpret the three-month gap as its pace. Governor Ueda stated that the BoJ's focus has shifted from raising inflation towards 2% to preventing it from overshooting, which implies that an October hike is more likely than waiting until December. The upcoming release of Japan's August labor cash earnings at 23:30 GMT on Tuesday, which is forecasted to rise 3.7% YoY after 4.7% in July, could influence the BoJ's decision. A slowdown of this magnitude might make an October hike less plausible. The Federal Reserve's September minutes are due on Wednesday at 18:00 GMT, with the Federal Reserve deciding on October 28, two days before the BoJ. The US half of the interest rate gap is likely to move first. Resistance levels include 158.50, the recent peak, and 159.00, the September 24 high. Support levels are around 157.50, just under Monday's low, and 157.00, Friday's low. Market sentiment favors buyers while the 157.50 level holds, aiming for 158.50 and then 159.00. The daily Stochastic Relative Strength Index (Stoch RSI) is near 84 and flattening above 80, suggesting that a strong Ueda speech could pull the pair back to 157.50 without breaking the call. A daily close below 157.00 would end this trend. The Japanese Yen is one of the world's most traded currencies, with its value determined by the performance of the Japanese economy, the differential between Japanese and US bond yields, and risk sentiment among traders. The BoJ, responsible for currency control, has indirectly intervened in currency markets to lower the Yen's value. The gradual unwinding of ultra-loose monetary policy has given support to the Yen, as the gap between Japanese and US bond yields has narrowed due to recent interest rate cuts in other major central banks. The Yen is often considered a safe-haven investment, strengthening during market stress.",
  "summary": "Bank of Japan (BoJ) Governor Ueda speaks on Tuesday at 06:35 GMT, and his first major remarks since the September 18 hike to 1.25% are the next test of October hike bets. Traders give a second hike on October 30 about a one-in-four chance.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}