Japanese Yen: BoJ tightening expectations lift JPY against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret highlight USD/JPY trading near 155.65 with the Japanese Yen (JPY) outperforming G10 peers as markets price in a Bank of Japan (BoJ) hike alongside elevated domestic risk around CPI and policy decisions. The shift from FX intervention to a more fundamentally driven approach leaves the policy outlook JPY-supportive, with key support at 153/152 and upside focus now at 158 after breaking 155. Discover more Fintech Currencies & Foreign Exchange Finance Policy repricing favors Japanese Yen “The JPY is strong, up 0.4% vs. the USD and outperforming all of the G10 currencies (along with SEK) into Thursdays NA session. Fundamental releases have been limited but near-term domestic risk is elevated into the 7:30pm ET CPI release and the BoJ policy decision that is expected to follow shortly thereafter.” “Markets have moved quickly to price in a BoJ hike over the past few weeks, reflecting a meaningful shift in the govt/BoJ approach to official currency management as officials moved from intervention to a more fundamentally-driven approach.” “The outlook for relative central bank policy remains JPY-supportive as markets move to price in a more aggressive tightening path for the BoJ.” “For USD/JPY, we continue to highlight support at 153 and 152 and have shifted our









