The post Japanese Yen remains subdued amid BoJ uncertainty and supports USD/JPY appeared on BitcoinEthereumNews.com.

The Japanese Yen (JPY) remains on the back foot against a broadly firmer US Dollar (USD) and climbs to its highest level since February 12 during the Asian session on Tuesday. Investors remain uncertain over the likely timing of the next interest rate hike by the Bank of Japan (BoJ) amid expectations that Japan’s new Prime Minister Sanae Takaichi will pursue aggressive fiscal spending plans and resist policy tightening. This, along with receding safe-haven demand, turns out to be a key factor that continues to undermine the JPY. Meanwhile, BoJ Governor Kazuo Ueda dropped hawkish hints last week and signaled the possibility of a rate hike in December or January next year. Furthermore, speculations that authorities might intervene to stem further JPY weakness might hold back bearish traders from placing aggressive bets. The USD, on the other hand, has climbed to a fresh high since early August as traders scaled back their expectations for another rate cut by the US Federal Reserve (Fed) in December, which acts as a tailwind for the USD/JPY pair. Japanese Yen bears retain control as fiscal concerns continue to fuel BoJ rate hike uncertainty The Bank of Japan remains reluctant to commit to further interest rate hikes amid Japan’s new Prime Minister Sanae Takaichi’s pro-stimulus stance, keeping the Japanese Yen depressed against a bullish US Dollar through the Asian session on Tuesday. Meanwhile, data released last Friday showed that the core Consumer Price Index in Tokyo – Japan’s capital city – has stayed above the BoJ’s 2% target for three-and-a-half-years. This, in turn, backs the case for further policy tightening by the central bank. Moreover, BoJ Governor Kazuo Ueda said last week that the likelihood of its baseline scenario materialising has heightened and reiterated that the central bank will continue to raise the policy rate…

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Filed under: News - @ November 4, 2025 2:28 am