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Yen steadies as traders weigh BoJ path ahead of September meeting

USD/JPY is holding in the 158.00 support area and the upper-159s range, with markets pricing about 20 basis points of BoJ tightening by September 18.

Reported · Written up by our desk · Major Pairs

Scotiabank strategists Shaun Osborne and Eric Theoret say the Japanese yen is slightly softer versus the US dollar, with USD/JPY trading between 158.00 support and resistance in the upper 159s. They note that attention is shifting from past intervention toward underlying fundamentals ahead of the Bank of Japan meeting on September 18.

The strategists point to expectations for tightening, with about 20 bps of BoJ tightening priced in, which they say could support the yen in the near term. They also describe the yen as down roughly 0.1% versus the dollar on the day and a middle performer among G10 currencies entering the start of the US trading week.

FXStreet also highlights other concurrent market moves, including a mild downward bias in GBP/USD, a softer tone in EUR/USD toward the 1.1660 zone, and gold holding above $4,600 per troy ounce despite some dollar and Treasury-yield fluctuations. In the broader rates backdrop, it notes the US Treasury plans to expand liquidity support buybacks in the 10- to 20-year and 20- to 30-year sectors.

Latest closeGold $4,432.00 ▲1.6%|EUR/USD 1.157 ▲0.4%|USD/JPY 159.31 ▼0.1%

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