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USD/JPY rises near 158.20 as BoJ opinion points to tighter split

Japan’s current account surplus narrowed to JPY 923.0 billion in June 2026, down from JPY 1,281.8 billion a year earlier, helping keep downward pressure on the yen.

Reported · Written up by our desk · Major Pairs

USD/JPY held gains in Asian trading Monday, trading around 158.20 after the yen posted modest losses the prior session. FXStreet said the pair’s strength reflects continued pressure on the Japanese yen following the Bank of Japan’s Summary of Opinions from its July 30 to 31 meeting.

The BoJ summary showed a division among board members, with some advocating for holding rates steady to assess the lagged impact of previous hikes, while others argued for maintaining or accelerating tightening amid upside risks to prices. The document also noted Middle East tensions weighing on activity, though it cited offsetting support from robust AI-related demand and a moderately recovering domestic economy.

Japan’s current account surplus narrowed sharply to JPY 923.0 billion in June 2026 from JPY 1,281.8 billion in the same month a year earlier, and missed forecasts of JPY 1,512 billion. FXStreet attributed the decline to a jump in imports, largely tied to higher crude oil purchases, despite strong AI-related electronics exports.

FXStreet also linked USD support to broad risk aversion as the US-Iran conflict moves through a critical diplomatic phase, with heightened focus on the Strait of Hormuz. TD Securities said the risk of another Fed hike still lingers, but noted upcoming inflation data could change rate expectations, while projecting next week’s CPI moves at 0.20% m/m for core and 0.15% m/m for headline.

Latest closeWTI crude $78.07 ▲3.8%|USD/JPY 158.52 ▲0.6%

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