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USD/JPY holds near 158 after BoJ speech changes little

Futures still imply about a 25% chance the BoJ hikes at the October 29 to 30 meeting, after Governor Ueda repeated a gradual path tied to Japan's economy and prices.

Reported · Written up by our desk · Major Pairs

Bank of Japan Governor Kazuo Ueda delivered his first major speech since the September 18 rate hike, but USD/JPY largely stayed within Monday's range, trading just above 158.00, according to FXStreet.

Ueda reiterated that the BoJ will continue raising rates in line with the economy, prices, and financial conditions, and said financial conditions remain accommodative, while adding that the board would need to weigh a hike if upside risks to prices outweigh downside risks to growth.

FXStreet also noted that Japan’s Finance Minister Katayama said on October 2 that Prime Minister Shigeru Takaichi's government agrees reflation is over, backing the BoJ as Tokyo pushes back on a weak yen.

The yen authorities have bought large amounts of yen recently, with Japan purchasing a record ¥11.73 trillion between April 30 and May 27 and stepping in again at the end of July, when the US Treasury also joined support efforts, FXStreet reported.

Latest closeUSD/JPY 157.94 ▲0.1%

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