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Japanese Yen Looks Set To Strengthen Further Amid Expectations Of Aggressive Boj
Thursday, 15 May 2025 09:45 WIB | USD/JPY |USD/JPY,

The Japanese Yen (JPY) traded with a positive bias against its US counterpart for the third straight day on Thursday (May 15) and for now, seems to have stalled the previous day's decline from weekly highs.

The Japanese wholesale inflation data released on Wednesday indicated that companies continued to pass on costs to consumers, adding to concerns over a more entrenched price rise in Japan. This is expected to keep the Bank of Japan (BOJ) on track for further interest rate hikes, which in turn, was seen supportive of the JPY.

Additionally, a slight deterioration in the global risk sentiment – ​​as depicted by a softer tone around equity markets – turned out to be another factor that worked in favor of the safe-haven JPY.

This, along with a modest US Dollar (USD) decline, dragged the USD/JPY pair back closer to the 146.00 mark during the Asian session. Meanwhile, optimism led by a 90-day US-China tariff truce might keep a lid on the JPY. Additionally, reduced bets for more aggressive policy easing by the Federal Reserve (Fed) could support the USD and the currency pair.(Newsmaker23)

Source: FXstreet

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