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Yen faces BoJ focus as USD/JPY resistance holds above 162.50

Scotiabank notes markets are pricing only about 25 bps of Bank of Japan tightening by year-end, leaving USD/JPY vulnerable near the 162.5 resistance zone.

Reported · Written up by our desk · Major Pairs

Scotiabank strategists Shaun Osborne and Eric Theoret said the Japanese yen is trading broadly in line with other G10 peers, but near term price action is likely to hinge on upcoming catalysts, including June PPI data and the Bank of Japan meeting on July 31.

The firm pointed to material resistance in USD/JPY above 162.50, which is also close to last week’s multi decade high.

Scotiabank added that despite expectations for additional tightening, markets still price only about 25 basis points of BoJ tightening by year-end, suggesting limited policy repricing could cap or guide the pair’s next move.

Latest closeUSD/JPY 162.49 ▲0.2%

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