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Yen rebound shifts focus to Bank of Japan outlook and guidance
USD/JPY fell from above 163.0 to below 158.0 within minutes amid speculation of possible Japanese FX intervention.
FXStreet reports investors are turning their attention to the Bank of Japan’s upcoming monetary policy announcement on Friday after the Japanese yen staged a sharp rebound during Thursday’s US session.
The move followed speculation that Japanese authorities intervened in the foreign exchange market, after USD/JPY tumbled from above 163.0 to below 158.0 within minutes.
While the BoJ is widely expected to keep its policy rate unchanged at 1% after its June rate hike, markets will also look to the central bank’s updated economic projections and Governor Kazuo Ueda’s press conference for signals on whether the currency recovery could be reinforced.
FXStreet adds that the BoJ is expected to publish its quarterly Outlook Report with updated growth and inflation forecasts, with inflation possibly marked slightly lower due to government subsidies and softer energy prices, alongside continued warnings that underlying price pressures may stay stronger than projected.
Latest closeUSD/JPY 159.74 ▼2.5%