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Yen recovers after BoJ remarks keep October hike odds in focus
Traders place the odds of a second BoJ hike on October 30 at about one in four, after USD/JPY traded above and below 158.00 in each of the last three sessions.
BoJ Governor Kazuo Ueda is set to speak Tuesday at 06:35 GMT, and his remarks are being treated as a key test of market bets for another Bank of Japan rate hike.
According to FXStreet, traders are assigning roughly a one in four chance to a second hike on October 30, following the BoJ's September 18 move to 1.25% and its earlier rate hike on June.
The outlet said USD/JPY has flipped around the 158.00 level, crossing it in both directions in each of the last three sessions, with the pair dipping toward 157.50 around the remarks before returning above 158.00 prior to US data.
FXStreet also noted that BoJ Deputy Governor Uchida said artificial intelligence is acting as a demand and price driver and that AI has made financial conditions more accommodative overall, and it pointed to Japan's August labor cash earnings due later Tuesday, forecast to rise 3.7% year on year.
Latest closeUSD/JPY 157.92 ▲0.0%