Japanese Yen: Watching 162 resistance after hawkish BoJ – Scotiabank

FXStreet Insights Team FXStreet

Scotiabank strategists Shaun Osborne and Eric Theoret note the Japanese Yen (JPY) is only fractionally weaker versus the Dollar (USD) but is outperforming across G10 crosses, reflecting market caution over potential official intervention. Governor Ueda’s hawkish comments, describing conditions as accommodative, support tightening expectations. For USD/JPY, the bank highlights key resistance above 162 and near-term support at 160 around upcoming Tokyo Consumer Price Index (CPI) data.

Yen resilience and key USD/JPY levels

"The yen is down fractionally vs. the USD while outperforming all of the G10 currencies on the crosses."

"The resilience is notable, and likely reflects markets participants’ ongoing fears of official currency management (intervention, price checking)."

"The latest data releases were limited to as expected PPI for May (3.3% y/y) and the next major data point will be the Tokyo CPI scheduled for Thursday at 7:30pm ET (Friday local)."

"Overnight comments from BoJ Gov. Ueda were hawkish, leaning toward further tightening while characterizing current financial conditions as ‘accommodative’."

"For USDJPY, we note the importance of resistance above 162 and see near-term support at 160."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD hits eight-month lows below 0.6850 amid bullish USD

AUD/USD stays defensive below 0.6850, hitting an eight-month low in the Asian session on Thursday as the possibility of a steeper Fed rate hike in December helps the US Dollar hold near its highest level since April 2025. Geopolitical uncertainty also supports the safe-haven buck, while the RBA’s cautious, on-hold stance limits the Aussie.

USD/JPY eases from near 160.00 amid looming intervention risks, BoJ hike bets

USD/JPY retreats slightly from an over two-month high as the recent surge back to the 160.00 psychological mark prompted verbal warnings from Japanese authorities and sparked fears of direct FX intervention. Moreover, data showed that Japan’s wholesale inflation picked up again in October, strengthening the case for a BoJ hike in December and lifting the Japanese Yen. However, a bullish US Dollar, bolstered by odds of a jumbo Fed rate hike in December, could cap the pair's downside.

Gold remains a sell-on-rise trade amid steeper Fed hike bets

Gold fades its tepid recovery attempts at the $4,000 level early Thursday, as sellers refuse to budge amid rising expectations of a steeper interest rate hike by the US Federal Reserve at its December monetary policy meeting.

Why the US Dollar's rally isn't as strong as it looks

The US Dollar Index (DXY) is back at an 18-month high, but most of its climb since August is the Euro (EUR) falling. Against a wider group of trading partners, the Dollar has gained half as much, and the Federal Reserve (Fed) has raised rates once this year. The US Dollar Index, which measures the Dollar against six other currencies, is trading near 103.

UK GDP is set to show that the economy continued growing in Q3

The highlight of the United Kingdom’s economic calendar this week will be the preliminary estimate of third-quarter Gross Domestic Product, which the Office for National Statistics will release on Thursday. The market is bracing for 0.7% growth in the three months to September, following 0.5% growth in the second quarter of 2026, with the annual rate accelerating to 1.9%, from 1.4% in the previous month.

What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.