USD/JPY Tumbles Below 154.000 as BOJ Rate Hike Bets Lift Yen
The USD/JPY currency pair has been trading below 154.000 as expectations for a Bank of Japan (BOJ) rate hike strengthen the Japanese yen.
Japan's Q2 GDP growth was revised higher to an annualised 1.4%, supporting expectations that the BOJ may continue raising interest rates, which is putting pressure on yen-funded carry trades and creating downside pressure on USD/JPY.
The upcoming US Consumer Price Index (CPI) data remains a key driver for USD/JPY, with stronger inflation potentially supporting the US dollar while weaker inflation would support the yen.