As expectations grow that the Bank of Japan will accelerate its rate hikes, USD/JPY continued to probe lower, breaking below the 23 February low and falling to around ¥153.80. With the yen strengthening broadly, other major currency pairs also came under pressure.
The yen’s strengthening trend continued amid speculation that the Bank of Japan will accelerate its rate hikes. USD/JPY broke below the 23 February low of ¥154.00, falling to ¥153.80 and making a new low since 18 February. Yen strength spread across the market, with selling pressure also extending to other major currency pairs.
Among currency pairs other than USD/JPY, EUR/JPY fell to ¥178.86, GBP/JPY to ¥208.36 and AUD/JPY to ¥111.04. The widening yen-strengthening trend confirms that buying pressure against the yen is intensifying.
The article does not present a specific outlook for the market’s future direction, but monetary policy developments at the Bank of Japan and US interest-rate trends are expected to remain the market’s focus. Readers will want to monitor movements in the foreign-exchange market and the Bank of Japan’s interest-rate policy.