USD/JPY Pauses Recovery Amid Hawkish BoJ Minutes
The USD/JPY pair has stalled its recovery from the 155.25-155.20 region, but prices have rebounded from the daily low and are currently trading above mid-157.00s.
The Japanese Yen received a modest boost from Japan's real wages growing for the sixth straight month in June, as well as hawkish Bank of Japan Minutes.
However, concerns about Japan's worsening fiscal condition and the wide US-Japan rate differential are holding back JPY bulls.
Traders are also pricing in a greater chance that the US Federal Reserve will raise borrowing costs in 2026, which is limiting USD losses and lending some support to the USD/JPY pair.