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Yen holds modest gains as USD/JPY stays below 160 resistance
Scotiabank points to upbeat Japan retail sales and industrial production as support while traders watch the Bank of Japan’s September 18 decision.
Scotiabank strategists Shaun Osborne and Eric Theoret said the Japanese yen is modestly stronger versus the US dollar, with USD/JPY showing firm resistance above 160 and a near term range supported around 159.00 to 159.50. They added that the yen is up about 0.2% against the dollar and has been outperforming most G10 peers, excluding NOK and SEK, during a modest retracement after Friday’s losses.
The bank linked yen support to recent Japanese data described as constructive, including a sizable surge in July retail sales and an unexpected expansion in industrial production that beat expectations. Scotiabank said the outlook for relative central bank policy remains the key focus into the Bank of Japan’s September meeting.
The strategists highlighted that officials are expected to act appropriately at the September 18 decision, with media reporting expectations that US Secretary Bessent believes Gov. Ueda will “do the right thing.” They also noted board member Takata is scheduled to speak later this week and pointed to 159.00 as the lower bound for the near term range.
Latest closeUSD/JPY 159.72 ▼0.2%