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USD/JPY edges higher as BoJ signals hawkish policy ahead of Sept. 18

Scotiabank says support is around 153 for USD/JPY, with short-term resistance above 155 ahead of a widely expected 25 bps BoJ hike on Sept. 18.

Reported · Written up by our desk · Major Pairs

USD/JPY is edging higher as the yen trades defensively after its sharp late-August rally, with Scotiabank strategists Shaun Osborne and Eric Theoret pointing to a hawkish shift in Bank of Japan messaging. They said the BoJ’s guidance is “unequivocally hawkish” ahead of a widely anticipated 25 bps hike on September 18.

According to Scotiabank, the pair is supported around 153, while short-term resistance is seen above 155. The strategists also referenced the yen’s roughly 3.7% rally from August 31 as the backdrop for the current move.

FXStreet also noted that USD/JPY is stabilizing above 153.5 during the Asian session, though it remains near a seven-month low set earlier in the week. The yen’s performance is tied to hawkish BoJ repricing, while US dollar selling pressure is eased by rising September Fed rate-hike expectations and US-Iran tensions ahead of US inflation data.

The report added that traders are looking toward US CPI, with broader market moves in the same session including a choppy gold profile as the US dollar strengthens and US Treasury yields rise following US Producer Prices.

Latest closeGold $4,445.30 ▲1.2%|USD/JPY 153.32 ▼0.1%

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