USD/JPY Hits Six-Month Low as BoJ Hawkishness Takes Hold

The USD/JPY pair has fallen to a six-month low of 153 after dropping around 4% in just a few days.

This decline is attributed to hawkish Bank of Japan monetary policy expectations, which have caused traders to unwind their short yen positions from the carry trade.

The Japanese authorities' record $96.5 billion support for the currency between July 30 and August 26 has also contributed to the yen's strength.

Japanese GDP data was revised higher to an annualized 1.4% in Q2, driven by stronger business investment and real wages rising 2.4% year-over-year in July.