USD/JPY Extends Gains as Yen Fears Mount
The Japanese Yen (JPY) continues to depreciate against the US Dollar (USD), holding losses below 157.00 USD as intervention fears grow.
The USD/JPY pair has extended gains beyond 157.00, nearly 3% above its early September lows, after the Fed's hawkish interest rate hike offset the positive impact of the BoJ's monetary normalization plans.
The Bank of Japan (BoJ) hiked rates by 25 basis points to 1.25% on Friday, with Governor Ueda hinting at further rate hikes due to economic growth and consumer prices. However, two dovish dissents within the committee have raised questions about how far the central bank can take its tightening plans.
Analysts at ING note that a reported BoJ rate check on Friday pushed USD/JPY below 157.0, suggesting Japanese authorities are focused on the pace of moves rather than defending a specific level.