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Yen holds near post-intervention highs as traders await BoJ minutes

USD/JPY steadied around 156.9 as the BoJ’s June meeting minutes due Wednesday may signal whether the board’s hawkish bias was already building.

Reported · Written up by our desk · Major Pairs

FXStreet reports USD/JPY is trading with a softer tone around the 156.9 area on Monday, with the Japanese yen holding most of its late week gains after Japan’s authorities intervened and the Bank of Japan (BoJ) delivered a relatively hawkish policy shift.

The yen’s rebound has been supported by ongoing speculation that officials remain active, which has limited traders’ willingness to rebuild large yen-short positions as liquidity thins around levels where intervention is believed to have occurred. Japanese officials have not confirmed last week’s operation, and the Ministry of Finance has said it will act against disorderly conditions, while warning against excessive one sided moves.

Attention is now on the BoJ Monetary Policy Meeting Minutes for the June gathering, scheduled for release during the Asian session on Wednesday. Investors will look for signs that a hawkish tilt, seen in the latest vote split, was already forming within the board, which could strengthen the case for additional rate increases.

The BoJ left its short-term rate unchanged at 1.0% last week in an 8 to 1 vote, and Governor Kazuo Ueda indicated the bank could accelerate tightening and avoid lagging behind inflation. Ahead of the minutes, US ADP Employment Change is due Wednesday, with private payrolls expected to fall to 70K in July from 98K in June, a result at or below the forecast could weaken Treasury yield momentum and add pressure to USD/JPY.

Latest closeUSD/JPY 157.40 ▼1.7%

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