JPY lags G10 ahead of BoJ decision – Scotiabank
The Japanese Yen (K{U}) weakened as markets looked past solid domestic data and focused on positioning and Friday’s Bank of Japan (BoJ) meeting, where a rate hike and a more hawkish outlook are widely expected, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD/JPY presses higher despite strong Japan data
"The yen is down 0.5% vs. the USD and underperforming all of the G10 currencies with the exception of GBP. Broader developments appear to be dominating as we note the absence of any material reaction to the release of stronger than expected trade and machine orders data."
"Positioning may also be playing a role as market participants adjust for near-term event risk and the BoJ policy decision on Friday. A 25bpt hike is widely anticipated, and policymakers are expected to endorse a higher rate path in 2026 along with a wider trading band for longer term yields."
"For USD/JPY, we continue to highlight the importance of near-term support at the 50 day MA (154.27) and look to near-term resistance above 156.50."
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FXStreet Insights Team
FXStreet
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