Yen Soars as BOJ Hike Expectations Firm

The Japanese Yen is experiencing a major bullish breakout, with USD/JPY falling as low as 153.51 earlier today, far below the 156.00 area seen yesterday.

This represents an almost 4% gain against the Dollar this month, making it the strongest G10 currency.

The Yen's strength is being supported by stronger Japanese economic data, with wages and revised GDP looking strong, increasing confidence that the Bank of Japan will raise its policy rate at its upcoming meeting on September 17-18.

The market seems to regard this hike as practically inevitable, with Japanese officials hinting at continuous collusion with the US to prop up the Yen.