USD/JPY Plummets Amid Intervention Speculation and Hawkish BoJ Outlook
The USD/JPY currency pair saw its largest one-day decline since January 2023 after falling to 157.98 before rebounding towards 159.50, ending the session 2.4% lower.
The move sparked speculation that Japan's authorities intervened in the FX market ahead of today's Bank of Japan (BoJ) policy decision, with Governor Ueda's guidance on the pace of future tightening being pivotal.
The BoJ is widely expected to keep its policy rate at 1%, but Standard Chartered expects one further rate hike by year-end. A hawkish signal from Governor Ueda could add to downside pressure on USD/JPY, with immediate support at 157.