USD/JPY retreats to 158.00 as hawkish BoJ minutes fuel December rate hike bets, though strong US labor data and a 4.1% unemployment rate provide a floor for the Dollar.
BoJ Meeting Minutes reveal widespread agreement among policymakers that further rate increases are appropriate as underlying inflation nears the 2% target, cementing expectations for a December hike. Haven demand has also favoured the JPY over the USD amid risk-off sentiment, both supporting a stronger Yen.
The pair trades around 158.00 and is losing ground as BoJ Meeting Minutes show widespread agreement that further rate increases are appropriate, cementing expectations for a December hike. Haven demand favouring JPY over USD adds pressure, and easing energy prices weigh on the Dollar. Strong US labour data (165,000 NFP jobs vs 65,000 consensus, unemployment at 4.1%) limits the downside.
The USD/JPY pair trades near 158.00 as the Japanese Yen strengthens on hawkish Bank of Japan meeting minutes. Policymakers signaled readiness to accelerate monetary tightening, with expectations mounting for a rate hike in December. While safe-haven flows support the Yen, robust US labor data—including 165,000 new jobs in October—limits the Dollar's downside.
Hawkish BoJ Meeting Minutes signal a possible December rate hike as underlying inflation nears the 2% target, and haven demand has favoured the Yen over the Dollar during recent risk-off moves.
The Yen is strengthening on hawkish BoJ Meeting Minutes that point to a December rate hike, plus haven flows favouring the Yen and lower energy prices weighing on the Dollar.
Robust US data such as 165,000 October NFP jobs and over 78% market odds of a December Fed hike limit the Dollar's downside, with upcoming CPI and PPI reports as key tests.