The post Japanese Yen remains on the back foot ahead of the crucial BoJ policy meeting appeared on BitcoinEthereumNews.com.

The Japanese Yen kicks off the new week on a weaker note, though the downside seems limited. Rising geopolitical tensions and hawkish BoJ expectations should lend some support to the JPY. Traders might also opt to move to the sidelines ahead of this week’s key central bank event risks. The Japanese Yen (JPY) drifts lower for the second straight day on Monday, pushing the USD/JPY pair to the 144.75 area during the Asian session, albeit lacking follow-through. Expectations that the Bank of Japan (BoJ) might forego another interest rate hike this year, along with a generally positive tone around the equity markets, undermine the safe-haven JPY. Investors, however, seem convinced that the central bank will stick to the path toward policy normalization amid the broadening inflation. This, along with rising geopolitical tensions in the Middle East, should help limit deeper JPY losses. Traders also seem reluctant and opt to wait for the crucial BoJ decision on Tuesday to determine the next leg of a directional move for the JPY. Investors this week will further take cues from the outcome of a two-day FOMC policy meeting on Wednesday, which will play a key role in influencing the near-term US Dollar (USD) price dynamics and providing some meaningful impetus to the USD/JPY pair. Japanese Yen bulls remain on the sidelines ahead of the crucial BoJ decision on Tuesday The Bank of Japan is reportedly weighing a plan to reduce the pace of its Japanese government bond (JGB) purchases by half, starting in April 2026. The proposal is set to be discussed at the two-day policy meeting, which begins this Monday, and is expected to receive a majority backing from board members. Meanwhile, the BoJ is widely anticipated to hold its benchmark rate steady at 0.5% at the end of the June policy…

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Filed under: News - @ June 16, 2025 3:26 am