JPY: BoJ to hike the interest rate – ING

FXStreet
Updated
Mitrade
coverImg
Source: Shutterstock

USD/JPY is edging lower this morning as Bank of Japan (BOJ) dove Toyoaki Nakamura says that he's not averse to a rate hike. The Japanese Yen (JPY) is performing well on the crosses as the prospect of a BoJ rate hike stands at odds with monetary easing underway elsewhere in the G10, ING’s FX analysts Chris Turner notes.


USD weakness to be most visible in USD/JPY


“This follows much market oscillation on whether the BoJ would pull the trigger on a rate hike this month. We think it will and that tomorrow's October Japanese wage data will support that call.”


“The yen is performing well on the crosses as the prospect of a BoJ rate hike stands at odds with monetary easing underway elsewhere in the G10. This week's events in Korea have also added to the safe-haven buying of the yen. We are bullish on the dollar, but should tomorrow's US NFP data disappoint, dollar weakness should be most visible in USD/JPY.” 


“However, a weaker EUR/JPY looks the cleaner trend here and a cross rate like SEK/JPY has already hit the target we put out as part of our calls for 2025.”

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Japanese Yen spikes to multi-week high against USD after Trump’s tariffs announcementThe Japanese Yen (JPY) jumped to a three-week top against its American counterpart during the Asian session on Thursday after US President Donald Trump imposed sweeping trade tariffs.
Author  FXStreet
1 hour ago
The Japanese Yen (JPY) jumped to a three-week top against its American counterpart during the Asian session on Thursday after US President Donald Trump imposed sweeping trade tariffs.
placeholder
AUD/USD remains weak below 0.6300 despite upbeat Chinese PMI dataThe AUD/USD pair remains under selling pressure around 0.6280 during the early Asian session on Thursday.
Author  FXStreet
1 hour ago
The AUD/USD pair remains under selling pressure around 0.6280 during the early Asian session on Thursday.
placeholder
AUD/USD below 0.6300 after Trump's announcementsOn Wednesday's American session, the Australian Dollar pulled back after a brief spike to multi-day highs, with the AUD/USD pair slipping back under the 0.6300 threshold.
Author  FXStreet
2 hours ago
On Wednesday's American session, the Australian Dollar pulled back after a brief spike to multi-day highs, with the AUD/USD pair slipping back under the 0.6300 threshold.
placeholder
GBP/USD rises to test new highs, absorbs Trump tariffs in strideGBP/USD stepped into fresh bids at six-month highs on Wednesday after the Trump administration unveiled tariffs that overall came in better than many investors had feared based on President Donald Trump’s cavalcade of tariff threats since taking up residence in the White House 72 days ago.
Author  FXStreet
2 hours ago
GBP/USD stepped into fresh bids at six-month highs on Wednesday after the Trump administration unveiled tariffs that overall came in better than many investors had feared based on President Donald Trump’s cavalcade of tariff threats since taking up residence in the White House 72 days ago.
placeholder
EUR/USD pares post-tariff gains, but maintains bullish stanceOn Wednesday, the EUR/USD pair saw a bullish surge after the Trump administration announced tariffs that turned out to be less severe than many investors had anticipated, given President Donald Trump’s barrage of tariff threats over the last 72 days.
Author  FXStreet
2 hours ago
On Wednesday, the EUR/USD pair saw a bullish surge after the Trump administration announced tariffs that turned out to be less severe than many investors had anticipated, given President Donald Trump’s barrage of tariff threats over the last 72 days.
Real-time Quote