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Japanese yen slips back near 160 per dollar as post-BoJ gains fade

USD/JPY traded just above 160.0 after whipsawing within a roughly 240-pip band between 158.6 and 161.0 earlier on Friday.

Reported · Written up by our desk · Major Pairs

The Japanese yen posted moderate losses against the US dollar on Friday, with USD/JPY trading just above 160.0 after earlier whipsaw moves within a roughly 240-pip range between 158.6 and 161.0, FXStreet reported.

The yen had rallied after Bank of Japan Governor Kazuho Ueda signaled that further rate hikes may come, but the gains did not hold through the European session.

FXStreet said the BoJ left its benchmark interest rate unchanged at 1%, while Ueda told markets the central bank is moving “in the same cycle” as the US and European central banks. He also warned that measures tied to medium- to long-term inflation expectations are “rising significantly,” which the report said points to renewed monetary tightening in coming months.

The yen’s move also followed speculation after a roughly 400-pip surge on Thursday with no clear fundamental driver. FXStreet noted the BoJ’s policy shift in March 2024, when it lifted rates, as part of the broader context for yen moves driven by interest rate divergence.

Latest closeUSD/JPY 157.40 ▼1.7%

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