Yen Soars to Two-Week High Amid Hike Bets, Dollar Steady Ahead of Payroll Data

The Japanese yen has been on an upward trend for the week, with a potential gain of 2.2% by Friday's close, according to Reuters.

This marks its strongest week in over a month, following a two-day rally that saw the yen strengthen against the U.S. dollar from a low of 156.45 to as high as 155.25 per dollar.

Analysts attribute this surge to increased bets on a Bank of Japan interest rate hike, which could potentially happen at their meeting on September 17-18.

JPMorgan warned that an unwinding of estimated 16 trillion-17 trillion yen in yen shorts could send the dollar to a range of 142-146 against the Japanese currency.