Yen Traders Pin Hopes on Warsh Speech, BoJ Rate Hike Expectations

The Japanese yen has been trading in a narrow range near 159.30 per US dollar ahead of Friday's speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium.

USD/JPY is consolidating, with some technical analysts expecting a sharp breakout after the Fed clarifies its stance on inflation.

The July US Personal Consumption Expenditure data showed a 3.7% year-on-year increase in headline PCE and 3.3% core PCE, leading to firmer US Treasury yields and support for the dollar.

Markets are anticipating a 25 basis point rate rise to 1.25% at the Bank of Japan's September meeting, with 57% of economists surveyed by Reuters expecting a hike compared to just 5% in July.