USD/JPY retreats from multi-month high near 157.90 – BBH

FXStreetNov 21, 2025 11:27 AM

View all comments（0）



USD/JPY edged down to 156.60 after reaching a multi-month high around 157.90 yesterday. Japan’s sticky inflation backdrop, increased fiscal support, and firm economic activity argue for the Bank of Japan (BOJ) to raise rates in December. However, the BOJ is in a hurry to resume normalizing rates which remains a drag on JPY, BBH FX analysts report.

BOJ cautious despite inflation above 3%

"BOJ Governor Kazuo Ueda still wants to see the “initial momentum” of annual wage negotiations (which typically takes place between February and March) before adjusting policy. The swaps market implies less than 20% odds of a rate hike at the next December 19 meeting, with a full 25bps rate increase priced for March."

"Japan October inflation matched consensus across the board. Headline, core ex. fresh food, and core ex. fresh food & energy CPI all ticked up 0.1pts to annual rates of 3.0%, 3.0%, and 3.1%, respectively. Japan core inflation remains well above the BOJ’s 2% target and tracking above its October projection. The BOJ projects core ex. fresh food and core ex. fresh food & energy CPI to average 2.7% and 2.8% in 2025, respectively."

"Japan’s Prime Minister Sanae Takaichi unveiled a fresh package of economic measures aimed at price relief worth ¥17.7 trillion (2.8% of GDP). That is more than last year's ¥13.9 trillion (2.2% of GDP) supplementary budget and implies additional JGB issuance are in the pipeline. Japan private sector growth momentum gained traction in November. The composite PMI rose to a three-month high at 52.0 vs. 51.5 in October driven by a slower contraction in manufacturing activity. The service sector recorded a solid rate of growth (53.1) that was unchanged from October."

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

Intel Enters Space Computing Market for the First Time, Releases 18A Space-Grade Chip Starfire

TradingKey - Intel (INTC) recently unveiled a space-grade System-on-Chip (SoC) code-named Starfire, marking the company’s official entry into the space computing market with its first self-developed dedicated chip. The product is primarily designed for satellites, spacecraft, and other equipment in extreme environments, focusing on meeting the demands of commercial aerospace, defense, and government customers for low power consumption, high reliability, and artificial intelligence computing capabilities.

Kospi Index Slumps 30%: Breaches 7,000-Point Technical Level, Has South Korea Stock Market Officially Entered Bear Market?

Over the past month, the KOSPI Index has recorded a cumulative plunge of approximately 30% and is losing the key support level of 7,000 points. Having broken its bullish technical structure, the index may continue to decline toward the 5,000-point mark in the second half of the year.

Datadog (DDOG) Stock Forecast: Bernstein Downgraded, Benchmark Raised to $330; Which Side Is Right?

Bernstein downgraded Datadog to Market Perform citing slowing non-AI demand. Benchmark raised to a Street-high $330 citing ‘excellent’ checks. DDOG fell 4% on July 10. At $257 on the trendline, the $272 trigger is the week-ahead watch. August 6 earnings.

Today’s Market Recap: AI Chip Stocks Plunge, Brent Crude Soars 10%, Gold Drops Below $4,000

TradingKey - On July 13 (ET), the three major U.S. stock indices closed lower across the board. The conflict between the U.S. and Iran escalated over the weekend, as Iran claimed it would close the Strait of Hormuz and the U.S. announced the restoration of a shipping blockade on Iran, driving a shar

US June CPI Preview: Can Cooling Inflation Open Up Fed Rate Cut Expectations? How Will US Stocks, the Dollar, and Gold React?

TradingKey - The United States will release June Consumer Price Index (CPI) data this Tuesday, marking one of the most critical macro events for global financial markets this week. Following a significant pickup in U.S. inflation in May, and as recent Middle East tensions, oil price volatility, Fed meeting minutes, and non-farm payroll data collectively shift market expectations, the June CPI will significantly impact the Federal Reserve's next policy assessment while directly determining the short-term trajectory of U.S. stocks, the U.S. Dollar (USD), and Gold (XAUUSD).

Featured Tools