BOJ rate hike likely, yen rally at risk
BOJ expected to hike rates next week, but yen rally may be limited if Ueda signals caution.
BOJ expected to hike rates next week, but yen rally may be limited if Ueda signals caution.
The yen hit a six-month high against the dollar as BOJ hike bets built, while China's August imports missed forecasts and the Kospi gained nearly 2%.
Japan's Q2 GDP was revised up to 1.4% annualised, reinforcing expectations that the BOJ will hike to 1.25% on September 18.
Japan's Q2 GDP revision out today could sway BOJ September rate hike odds, currently at 80%.
USD broadly weakened, led by yen surge; USDJPY fell 1.22% to 154.33 on rising BOJ rate hike bets. Oil climbed $1.22 on Middle East tensions.
Bitcoin held above $79,000 during a 3.7% yen rally, avoiding the 20% crash seen in 2024. Japan spent $94.6B on intervention.
USDJPY dropped 1.15% as yen strengthened on BOJ rate hike bets. Geopolitical tensions pushed oil prices higher. EUR and GBP fell modestly.
USD/JPY falls below 155 for first time since February, as yen gains on technical and fundamental drivers.
USD/JPY trades at 155.60, down 0.4%; technicals remain bearish with key support at 155.00.
USD/JPY has a notable option expiry at 155.75 on 7 September, with intervention risks dominating trading.
USD/JPY plunged as markets price in likely back-to-back BOJ rate hikes, with September now nearly fully priced.
The US dollar had a mixed reaction to the blockbuster US jobs report, with technical levels causing reversals in some pairs.
The USD trades in narrow ranges ahead of the US jobs report, with technical levels highlighted for EURUSD, USDJPY and GBPUSD.
US and Canadian non-farm payrolls reports are due shortly. Markets focus on USD/JPY trading, fixed income yields, and Canada's employment after BOC held rates.
USD/JPY bounced near the 155.00 support after Fed's Waller turned dovish; markets await the US NFP report for further direction.