JPY Focus Shifts to BoJ Meeting as Market Seeks Rate Path Clarity

The Japanese Yen has seen its market focus shift from past intervention to fundamentals ahead of the September 18 Bank of Japan (BoJ) meeting.

According to Scotiabank strategists Shaun Osborne and Eric Theoret, the JPY is slightly softer versus the US Dollar, trading between 158.00 support and resistance in the upper-159s.

The market narrative has moved from official intervention that dominated through much of the summer, with participants now focusing on fundamentals into the BoJ meeting.

The meeting is priced for about 20 basis points (bps) of tightening, offering some scope for additional near-term strength in the JPY.