The Japanese Yen (JPY) is barely weaker versus the US Greenback (USD), underperforming most G10 currencies, as markets await subsequent week’s BoJ assembly the place a 25bps price hike is broadly anticipated. Policymakers sign the potential for additional tightening in 2026, retaining USD/JPY range-bound between 154 and 157, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD/JPY stays range-bound amid hawkish BoJ indicators
“The yen is getting into Friday’s NA session with a 0.2% decline vs. the USD and underperformance towards the entire G10 currencies aside from the Skandies SEK and NOK.”
“Studies of a constructive, hawkish shift on the BoJ have didn’t ship energy—up to now—with media suggesting that policymakers expect an extension of the tightening cycle past 0.75%. Subsequent week’s BoJ coverage determination is broadly anticipated to ship a 25bpt hike, to 0.75%, and policymakers seem like paving the best way for additional tightening in 2026.”
“We’re impartial USD/JPY awaiting a break of the current vary certain between the mid-154 and upper-157 areas.”
