Forex
JPY Tumbles Amid BoJ Expectations
The Japanese Yen (JPY) has been performing poorly against its peers, including a 0.7% drop versus the US Dollar (USD). Scotiabank strategists Shaun Osborne and Eric Theoret point to this underperformance alongside other G10 currencies like the New Zealand Dollar (NZD) and Swedish Krona (SEK).
The focus is on Friday's Bank of Japan (BoJ) meeting, where a hike in interest rates is widely anticipated but already priced into the market. This has led to a weaker JPY.
Looking at the USD/JPY pair specifically, Osborne and Theoret flag recent lows around 153 as support levels, with additional support near 152. However, they also note resistance above 155.