Japanese Yen Rallies as Robust Data Bolsters Currency Ahead of BoJ Meeting

The Japanese Yen (JPY) has strengthened against the US Dollar (USD), driven by positive domestic data. According to Scotiabank strategists Shaun Osborne and Eric Theoret, retail sales and industrial production have surged in July, beating expectations.

This upbeat news has given the JPY a modest boost of 0.2% against the USD, with it outperforming most G10 currencies except for NOK and SEK. As the Bank of Japan (BoJ) prepares to meet on September 18, officials are expected to take action appropriately.

In terms of price action, clear resistance is evident above the key level of 160 USD/JPY. Scotiabank analysts anticipate that prior support at 159.50 will hold short-term support, with 159.00 marking the lower bound of the near-term range.