Japanese yen gains vs. USD on BoJ-Fed divergence, intervention fears
The post Japanese yen gains vs. USD on BoJ-Fed divergence, intervention fears appeared on BitcoinEthereumNews.com.
The USD/JPY pair struggles to capitalize on the previous day’s positive move and attracts some intraday sellers near the 153.75 resistance zone during the Asian session on Tuesday. Spot prices touch a fresh daily low around the 153.25-153.20 area in the last hour, though the downtick lacks bearish conviction. Traders remain on high alert amid the possibility of a coordinated Japan-US intervention to stem weakness in the Japanese Yen (JPY). Moreover, the diverging interest rate paths between the Bank of Japan (BoJ) and the US Federal Reserve (Fed) contribute to capping the upside for the USD/JPY pair. However, Monday’s disappointing release of Japan’s Q4 GDP might have reduced urgency for the BoJ to tighten further, which might hold back the JPY bulls from placing aggressive bets. Adding to this, the prevailing risk-on environment might keep a lid on the safe-haven JPY and act as a tailwind for the USD/JPY pair. That said, any meaningful appreciation for the currency pair still seems elusive as dovish Fed expectations, along with threats to the central bank’s independence, fail to assist the US Dollar (USD) in attracting any meaningful buyers. Traders might also opt to wait for more cues about the Fed’s rate-cut path before positioning for the next leg of a directional move. Hence, the focus will remain glued to the release of the FOMC minutes on Wednesday. This week’s US economic docket also features Durable Goods Orders and housing market data. Apart from this, the global flash PMIs and speeches from influential FOMC members could provide some meaningful impetus to the USD/JPY pair during the latter part of the week. Nevertheless, the broader fundamental backdrop suggests that the path of least resistance for spot prices is to the downside. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most…
Filed under: News - @ February 17, 2026 1:27 am