USD/JPY Consolidates Ahead of Himino's Speech

The US Dollar (USD) against the Japanese Yen (JPY) has remained in a tight range, trading around 159.31 on Thursday.

Investors are eagerly awaiting fresh signals from Bank of Japan (BoJ) officials, particularly Deputy Governor Ryozo Himino's speech later today, which could provide clues on the timing of the next rate hike.

Momentum is building towards a potential 25-basis-point rate increase in September, with markets now pricing in an approximately 87% probability, up from just 23% before the July meeting.

This shift in expectations comes after former BoJ board member Seiji Adachi's recent comments that the central bank may raise rates as early as next month and potentially follow with another hike in January to combat imported inflation.