Yen Weakness Deepens as Market Awaits BOJ Decisions

The Japanese yen has weakened again, this time by as much as 0.6% against the US dollar.

This move comes after recent interventions by the Treasury Department and a shift in the BOJ's rhetoric, which had already tested multi-month lows.

The market is reacting to a move away from risk with a sharp sell-off in the yen, suggesting that the implied BOJ rate hike has already been priced in. If the BOJ wants to achieve a lasting stabilization of the exchange rate, it will need to take further steps.

The upcoming FED and BOJ decisions will be crucial in determining the future direction of the currency pair. Central banks' communication and the implied path of interest rates will also play a significant role in shaping market expectations.