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Japanese Yen ticks higher against weaker USD amid divergent BoJ-Fed expectations
Wednesday, 19 February 2025 11:26 WIB | USD/JPY |

The Japanese Yen gains some positive traction following an Asian session downtick.
Bets for more interest rate hikes by the BoJ continue to act as a tailwind for the JPY.
The divergent BoJ-Fed expectations contribute to capping the upside for USD/JPY.
The Japanese Yen (JPY) attracts some buyers following an Asian session dip against its American counterpart and reverses a part of the previous day's slide amid hawkish BoJ expectations. Investors now seem convinced that the Bank of Japan (BoJ) will hike interest rates further amid signs of broadening inflationary pressures in Japan, which led to the recent significant rise in Japanese bond yields. The resultant narrowing of the rate differential between Japan and other countries continues to underpin the lower-yielding JPY.
The Japanese Yen gains some positive traction following an Asian session downtick.
Bets for more interest rate hikes by the BoJ continue to act as a tailwind for the JPY.
The divergent BoJ-Fed expectations contribute to capping the upside for USD/JPY.
The Japanese Yen (JPY) attracts some buyers following an Asian session dip against its American counterpart and reverses a part of the previous day's slide amid hawkish BoJ expectations. Investors now seem convinced that the Bank of Japan (BoJ) will hike interest rates further amid signs of broadening inflationary pressures in Japan, which led to the recent significant rise in Japanese bond yields. The resultant narrowing of the rate differential between Japan and other countries continues to underpin the lower-yielding JPY.
The yield on the benchmark 10-year Japanese government bond reached levels not seen since 2010 earlier this week, which should continue to underpin the Japanese Yen.
Officials from the US and Russia held a crucial meeting in Saudi Arabia to discuss ways to halt the almost three-year-old war in Ukraine and also agreed to hold more talks.
Furthermore, a delay in the implementation of US President Donald Trump's reciprocal tariffs remains supportive of a positive risk tone and undermines the safe-haven JPY.
Market participants now look forward to the release of minutes of the Federal Reserve's latest policy meeting in January for fresh cues about the future interest rate-cut path.

Source: Fxstreet

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