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Yen trades range-bound as markets price a Sept. BoJ rate hike

USD/JPY is holding a flat band between 158.00 support and resistance in the mid to upper 159s while traders watch for BoJ tone into 2027.

Reported · Written up by our desk · Major Pairs

Scotiabank strategists Shaun Osborne and Eric Theoret said the Japanese yen is staying quiet and extending a tight consolidation as markets gradually price in a 25 basis point Bank of Japan rate hike for September 18.

In USD/JPY, they cited a flat range with support at 158.00 and resistance in the mid to upper 159s, noting that hawkish BoJ messaging is offering some support through spreads.

They added that traders are also assessing the tone for potential further tightening into 2027.

Beyond the yen, the note pointed to additional FX developments, with GBP/USD offered below 1.3600 and EUR/USD slipping back to the mid-1.1600s ahead of key upcoming events and US data, including Chair Kevin Warsh’s Jackson Hole speech on Friday.

Latest closeEUR/USD 1.166 ▼0.1%|USD/JPY 159.15 ▼0.1%|GBP/USD 1.359 ▼0.4%

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