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Yen stays weak as Japan’s 10-year yield hits 3% first time since 1996

USD/JPY was around 159.85 in early European trading as attention focused on the Bank of Japan’s September 18 decision and whether the BoJ will raise rates more aggressively.

Reported · Written up by our desk · Major Pairs

The Japanese yen remained weak versus the US dollar even after Japan’s 10-year bond yield climbed to 3% for the first time in three decades, a level reached for the first time since 1996, according to FXStreet. During early European trading, USD/JPY edged higher to around 159.85.

The move follows signals from US Treasury Secretary Scott Bessent that the United States wants the Bank of Japan to raise interest rates more aggressively. Bessent said Japan’s government and central bank will take action that leads to a stronger yen, but FXStreet reported the yen did not strengthen against the dollar immediately after the comments.

Japanese Finance Minister Satsuki Katayama met with Bessent and agreed that orderly yen moves are important for global market stability. The US and Japan also confirmed that continued and cooperative measures will support that shared goal, FXStreet noted.

Strategists at Scotiabank said the outlook for relative central bank policy remains central into the BoJ’s September 18 decision, with more attention on international commentary about the BoJ’s next move. They also pointed to expectations shaped by external pressure ahead of the meeting, plus a scheduled appearance by BoJ board member Takata later this week.

FXStreet also cited technical levels for USD/JPY, saying the pair was capped below the 100-day moving average near 160.00 and the upper Bollinger band around 160.35, while support was seen around the 20-day Bollinger middle band near 159.15 and the lower Bollinger band near 157.90.

Latest closeUSD/JPY 159.72 ▼0.2%

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