JPY gains as BoJ hikes support currency – ING

FXStreet Insights Team FXStreet

The Japanese Yen (JPY) is finding support from expected BoJ rate hikes, with markets pricing a 25bp move for December 19. USD/JPY is projected to reach 152 by year-end, with a modest 148 forecast for 2026 as Japan balances reflation and currency strength, ING's FX analyst Chris Turner notes.

USD/JPY set for modest year-end pullback

"October's spike in USD/JPY above 150 came as a shock to many. And by mid-November, most had concluded there was little that could turn USD/JPY around apart from heavy official intervention at 160. Additionally, we've been asked several times whether the yen is losing its safe-haven status. We've replied that the benign risk environment means the yen has not seriously been tested on that score."

"However, it now seems that the prospect of Bank of Japan hikes is finally supporting the yen. A 25bp hike is virtually priced for the 19 December meeting and the 1m JPY OIS rate, priced two years' forward, has moved to 1.47% from 1.14% in the last month alone. The view here seems to be that the new Japanese government, despite its reflationary credentials, does not want to embrace a weak yen and will allow BoJ rate hikes."

"We've got a modest 152 target for USD/JPY by year-end. And also a modest 148 forecast for year-end 2026."

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.

EUR/USD climbs to daily highs, focus on 1.1650

EUR/USD now picks up extra pace, climbing past the 1.1640 level, or daily highs, as the US Dollar continues to lose momentum. The move follows fresh tariff threats from President Trump against eight European countries opposing his proposal to take Greenland. With US stock and bond markets closed for Martin Luther King Jr. Day, trading conditions are likely to remain thin.

GBP/USD advances to two-day tops near 1.3420

GBP/USD found its footing after a soft start to the week, edging modestly above 1.3400 the figure on Monday. The British Pound gathers steam on the back of a weaker Greenback, as markets continue to evaluate President Trump’s latest tariff threats against Europe over Greenland.

Gold keeps the bid tone unchanged, still below $4,700

Gold drew strong buying interest at the start of the week, surging to a fresh record high near $4,700 per troy ounce. Markets turned more cautious after President Trump threatened tariffs on eight European countries opposing his plan to acquire Greenland, a shift that helped underpin the yellow metal.

Dogecoin, Shiba Inu, Pepe in a freefall, echoing Bitcoin’s drop

Meme coins, such as Dogecoin, Shiba Inu, and Pepe, extend the decline from last week, with a roughly 3% drop on Monday. The meme coins trade below the crucial moving averages, aiming for the immediate support to potentially reset the momentum.

When tariffs become ammunition and capital becomes the battlefield

Markets opened the week like a risk engine hitting a pothole at speed. Equities stepped back, gold vaulted to fresh highs, Treasuries caught a bid, and the dollar, outside of havens, took on a soft bid. This was not a data-driven wobble or a valuation purge.