The post Japanese Yen retreats after hitting over two-month high against USD appeared on BitcoinEthereumNews.com.

The Japanese Yen climbs to an over two-month top against USD amid BoJ rate hike bets. Retreating JGB yields cap the JPY and assists USD/JPY to bounce off sub-149.00 levels.  The emergence of fresh USD selling should keep a lid on a further recovery for the pair. The Japanese Yen (JPY) builds on last week’s strong gains against its American counterpart and drags the USD/JPY pair below the 149.00 mark, or the lowest level since early December during the Asian session on Monday. Japan’s strong Consumer Price Index (CPI) released on Friday comes on top of the upbeat Q4 Gross Domestic Product (GDP) growth report last week. This, along with expectations that sustained wage gains would spur consumer spending, suggests that the Bank of Japan (BoJ) might hike interest rates more aggressively than initially thought and continue to underpin the JPY.  Apart from this, the emergence of fresh US Dollar (USD) selling benefits the JPY and contributes to the USD/JPY pair’s slide for the fourth straight day – marking the seventh day of a negative move in the previous eight. Meanwhile, BoJ Governor Kazuo Ueda showed readiness to ramp up government bond buying if long-term interest rates rise sharply. This, in turn, leads to a further pullback in the Japanese government bond (JGB) yields, from a multi-year peak touched last week, which prompts some intraday JPY selling and assists the currency pair in rebounding over 50 pips from the daily low. Japanese Yen bulls retain control amid hawkish BoJ expectations Data released on Friday showed that Japan’s core inflation touched a 19-month high in January and reinforced expectations that the Bank of Japan will keep raising interest rates.  BoJ Governor Kazuo Ueda warned on Friday that the central bank could increase bond buying if abnormal market moves trigger a sharp…

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Filed under: News - @ February 24, 2025 3:16 am