JPY Strength Builds Ahead of BoJ Decision

The Japanese Yen has been outperforming the US Dollar in recent times, with markets fully pricing in a 25 basis point Bank of Japan hike on September 18.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight this trend, noting that positioning looks increasingly offside for USD/JPY.

The currency pair has drifted towards key support near 153, with the 2026 low around 152 serving as additional support.

Osborne and Theoret see risks tilted to further Yen gains, citing resistance now coming in around 155.