Forex
Home›Forex›Major Pairs›USD/JPY stays range-bound near 159 as yen struggles to…
USD/JPY stays range-bound near 159 as yen struggles to extend gains
The yen has given back roughly half of its late-July appreciation after joint intervention, while markets increasingly expect a Bank of Japan rate hike in September.
USD/JPY was last around 159.53, with the Japanese yen trading sideways for more than a week and losing about half of the gains it made after a late-July joint intervention by Tokyo and Washington, Action Forex reports.
The analysis attributes ongoing pressure on the yen to a wide interest rate differential, rising fiscal risks, and elevated energy and import costs, even as markets look for a Bank of Japan rate hike in September to support the currency and help contain inflation.
Bond market moves and data are reinforcing that rate-hike outlook, with 10-year Japanese government bond yields climbing to 30-year highs and core machinery orders rising 9.7% in June versus forecasts, which the outlet says points to robust business capital spending.
Technically, the pair is trading within a consolidation range near 159.49, with Action Forex pointing to scenarios that could see a pullback toward 159.00 and potentially 158.54 if 159.00 breaks lower, while noting the yen’s next move will depend on BOJ signals, US economic data, and energy prices.
Latest closeUSD/JPY 157.84 ▼0.3%