USD/JPY Slides Towards 155 as Yen Rally Driven by GPIF Speculation and BoJ Hawkishness

The USD/JPY currency pair is sliding towards the 155 level as speculation about Japan's Government Pension Investment Fund (GPIF) fuels a yen rally.

The GPIF, which manages around $2 trillion, has been under scrutiny due to its potential increase in domestic bond allocation. This move would likely further support higher domestic yields and lead to a repatriation of Japanese assets.

Additionally, the Bank of Japan's (BoJ) hawkish stance is also contributing to the yen's strength, with officials increasingly explicit about further tightening measures.