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USD/JPY retreats from three-week high as Powell’s remarks amplify September rate cut bets

  • USD/JPY drops nearly 1% to 146.66 as traders react to Powell’s Jackson Hole remarks, retreating from an intraday high of 148.78.
  • Fed Chair Jerome Powell highlighted downside risks to jobs and uncertainty from higher tariffs, keeping a cautious but flexible policy stance.
  • Markets sharply increased Fed rate cut bets; CME FedWatch now shows 90% probability of a 25 bps September cut, up from 70% earlier.

The Japanese Yen (JPY) advances strongly against the US Dollar (USD) on Friday, with USD/JPY retreating from an intraday high of 148.78 to trade near 146.66, down almost 1% on the day. The pullback marks a reversal from the pair’s strongest level in three weeks, as investors unwound US Dollar positions following Federal Reserve (Fed) Chair Jerome Powell’s cautious remarks at the Jackson Hole Symposium.

Powell’s address at Jackson Hole fueled speculation that the Fed is preparing to recalibrate monetary policy, as he acknowledged rising downside risks to employment and flagged uncertainty from higher tariffs. While he avoided committing to a September move, his balanced tone prompted markets to push rate cut expectations sharply higher, sending Treasury yields lower and triggering a broad US Dollar selloff.

The shift in expectations was reflected in the CME FedWatch Tool, which now shows a 90% probability of a 25 basis point rate cut in September, up from around 70% earlier in the day.

As a result, the US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, fell sharply from a two-week high of 98.83. At the time of writing, the index is trading near 97.75, erasing all the gains registered earlier this week.

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.95%-0.86%-1.01%-0.54%-1.06%-0.87%-0.83%
EUR0.95%0.11%-0.07%0.45%-0.17%0.09%0.15%
GBP0.86%-0.11%-0.20%0.31%-0.28%-0.01%0.02%
JPY1.01%0.07%0.20%0.47%-0.05%0.08%0.14%
CAD0.54%-0.45%-0.31%-0.47%-0.58%-0.33%-0.29%
AUD1.06%0.17%0.28%0.05%0.58%0.26%0.30%
NZD0.87%-0.09%0.01%-0.08%0.33%-0.26%0.04%
CHF0.83%-0.15%-0.02%-0.14%0.29%-0.30%-0.04%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

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