Japanese Yen Extends Losses Through Intervention Lows Near 155
The Japanese Yen has strengthened against the US Dollar, extending losses through prior intervention lows near 155. According to Scotiabank strategists Shaun Osborne and Eric Theoret, this move is technically significant and potentially points to further Yen gains.
The data calendar has been heavy, with key labor cash earnings (wage) data delivering a solid beat, while final Q2 GDP figures delivered a minor downward adjustment. This has contributed to the strong performance of the Japanese currency.
The Bank of Japan is expected to hike interest rates by 25 basis points on September 18, which is almost fully priced in. The focus remains centered on government and central bank efforts to support the currency, with officials keenly eyeing price action in the markets.