Yen Seen Trading in a 158.80–160.40 Range Ahead of BOJ Decision
The yen is likely to trade in a 158.80–160.40 range against the U.S. dollar as the Bank of Japan rate decision comes into focus, according to Kumiko Ishikawa, an analyst at Sony Financial Group. The dollar was last trading around 159.76 yen.
While the BOJ is widely expected to keep monetary policy unchanged, Ishikawa said the market’s attention will be on how the central bank assesses the recent surge in oil prices, ongoing yen weakness, and rising market volatility. The combination of a weaker currency and higher energy costs increases the risk of imported inflation, making BOJ communication especially important.
Market participants are also watching closely for any hawkish shift in BOJ Governor Kazuo Ueda’s rhetoric, as the Middle East conflict raises the risk that underlying inflation could accelerate. With USD/JPY hovering near the psychologically sensitive 160 level, even subtle changes in tone from the BOJ could trigger outsized moves in the pair.
Source : Newsmaker.id
