USD/JPY

Bank of Japan (BoJ) Governor Kazuo Ueda reiterated on Friday that the central bank will continue raising interest rates as underlying inflation approaches its 2% target, noting that financial conditions remain accommodative.

USD/JPY is little changed on Friday but heads for its first weekly loss in five weeks amid a sharp decline in the US Dollar (USD). However, the Japanese Yen (JPY) finds only limited support as its fundamental backdrop remains fragile.

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann see USD/JPY in a near-term range, expecting the Dollar to trade between 157.80 and 158.50 in the 24-hour view. For the 1–3 weeks horizon, they maintain a broader 157.50–159.05 range. Over 1–3 months, they highlight building downward momentum that points to further USD/JPY weakness, though reaching the January low at 152.08 is still uncertain.

MUFG’s Michael Wan reports that Bank of Japan (BoJ) Board Member Junko Koeda has strengthened the case for further policy tightening. Koeda emphasized upside price risks, still-accommodative financial conditions and judged the neutral rate to be well above 1%.

The USD/JPY pair loses ground to near 157.85 during the early European trading hours on Friday. Hawkish hints from Bank of Japan (BoJ) policymakers provide some support to the Japanese Yen (JPY) against the US Dollar (USD).

The USD/JPY pair fades an Asian session uptick to the 158.15-158.20 region, sliding back below the 158.00 mark following Federal Reserve (Fed) Chair Kevin Warsh's opening remarks at the Annual Meetings of the International Monetary Fund and World Bank Group, in Bangkok.