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Japanese yen strengthens after hawkish BoJ comments lifts USD/JPY

USD/JPY slid for a second straight day and traded near 156.8 as BoJ board member Hajime Takata signaled a shift in how Japan should adjust policy rates.

Reported · Written up by our desk · Major Pairs

USD/JPY extended losses for a second consecutive day, trading around 156.8 during European hours, as traders shifted expectations after hawkish comments from a Bank of Japan board member. FXStreet reports that the move follows a sharp drop in the pair over minutes and another slide overnight, which reignited speculation about another round of possible Japanese currency intervention.

The yen gained strength after Hajime Takata said 2026 would mark a structural regime change supported by global growth and AI-linked investment, requiring a different central bank policy response. Takata argued the BoJ should move away from its conventional semi-annual pace of incremental rate increases and consider a wider set of options beyond standard 0.25% hikes.

FXStreet also linked the dollar headwind to softer US labor-market data, citing ADP showing private-sector employment added 38,000 jobs in August, below the 47,000 forecast. The outlet added that BoJ actions can matter for the yen because the bank has a currency-control mandate and has intervened directly in the past, though it generally avoids doing so often due to political concerns with major trading partners.

Latest closeUSD/JPY 158.82 ▼0.9%

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