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Japanese Yen traders seem reluctant amid BoJ uncertainty; a softer USD caps USD/JPY
Monday, 11 August 2025 14:38 WIB | USD/JPY | Yen

The Japanese Yen (JPY) seesaws between tepid gains/minor losses against its American counterpart through the early European session on Monday amid mixed fundamental cues.

The prevalent risk-on environment, along with the uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ), is seen undermining the safe-haven JPY. However, the divergent BoJ-Federal Reserve (Fed) policy expectations hold back the JPY bears from placing aggressive bets.

Investors seem convinced that the BoJ will raise interest rates by the end of this year. In contrast, the US central bank is expected to resume its rate-cutting cycle in September.

This keeps the US Dollar (USD) depressed near a two-week low touched on Friday and acts as a tailwind for the lower-yielding JPY. Apart from this, nervousness ahead of the US-Russia bilateral talks on Ukraine offers some support to the JPY and contributes to keeping the USD/JPY pair below the 147.75-147.80 hurdle.

Source: FXstreet

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