USD/JPY

TradingKey - On Tuesday, the yen extended its strong rally, with USD/JPY briefly dipping to 152.89, hitting its lowest level since February. As of writing, the currency pair was down about 0.69% at 153.27. Since retreating from a high near 160 early last week, its cumulative decline has approached 4%, indicating that investors are trimming short yen and carry trade positions.

TradingKey - As of the European session on September 7, the US dollar traded weaker against the Japanese yen (USDJPY) below 155.50. Although the US August non-farm payrolls data released last week far exceeded expectations, briefly driving a rebound in the dollar, the yen's recent performance has remained strong. Rapidly rising expectations of a September rate hike by the Bank of Japan, coupled with market vigilance over potential foreign exchange intervention by the Japanese government, have caused USDJPY to pull back continuously from near 164 in late July, with its cumulative decline now approaching 5%.

TradingKey - As of the European session on August 3, USD/JPY was trading near 156.70, having dropped sharply to 155.20 during the session before recovering some of its losses. Last week, USD/JPY approached 164.00, hitting a high of approximately 40 years, but the exchange rate has since retreated fo

TradingKey - On June 16, Tokyo time, the Bank of Japan concluded its two-day monetary policy meeting, announcing a 25-basis-point rate hike to raise its policy interest rate from 0.75% to 1.00%. This is the first time since 1995 that Japan's interest rate has touched the 1% level, and it also marks the central bank's first rate hike since December 2025, aligning with widespread market expectations.

TradingKey - USD/JPY touched 159.65 during the early Asian trading session on May 28, just shy of the 160.70 level recorded prior to the Japanese authorities' intervention in early May. Following the Bank of Japan's intervention, which had pushed the yen to 155.50, approximately 80% of those gains have been retraced in just three weeks.

USD/JPY extends its gains for the third successive day, trading around 157.70 during the Asian hours on Wednesday.

TradingKey - On Tuesday (May 12), the Bank of Japan released the minutes of its April monetary policy meeting. The minutes revealed that several policy board members believed the central bank may need to raise interest rates soon, with some even suggesting that action could be taken as early as the June meeting.

TradingKey - During the Asia mid-day session on Wednesday, May 6, the Japanese yen experienced another sharp intraday surge. USD/JPY briefly touched 155.04, marking the yen's strongest level since February 24, with intraday gains reaching as much as 1.8%.

TradingKey - During Wednesday's Asian session, the yen strengthened sharply, with USD/JPY briefly dropping to the 155 mark. The market has characterized this move as another intervention by Japanese authorities. Despite Japan's ample foreign reserves, the frequency of interventions this year is limited by IMF guidelines. Currently, the Bank of Japan is engaged in an intensive strategic game with the market regarding its policy space.

The USD/JPY pair loses ground to around 157.65 during the Asian trading hours on Wednesday. The US Dollar (USD) weakens against the Japanese Yen (JPY) after US President Donald Trump announces a pause on 'Project Freedom' in the Strait of Hormuz.