The post Japanese Yen set to gain vs USD on BoJ hike bets, dovish Fed outlook appeared on BitcoinEthereumNews.com.

The Japanese Yen (JPY) is trading with a positive bias during the Asian session on Thursday and looking to build on the previous day’s gains against a broadly weaker US Dollar (USD). Traders ramped up their bets for an imminent interest rate hike by the Bank of Japan (BoJ) following Governor Kazuo Ueda’s remarks earlier this week. Moreover, a survey showed on Wednesday a modest expansion of private sector output in Japan for the eighth straight month in November and backs the case for further BoJ policy normalization. This, in turn, might continue to underpin the JPY. Meanwhile, prospects for BoJ tightening, along with a reflationary push by new Prime Minister Sanae Takaichi, keep super-long-dated Japanese government bonds (JGB) under pressure. The resultant narrowing of the rate differential between Japan and other major economies could further benefit the lower-yielding JPY. The USD, on the other hand, languishes near its lowest level since late October amid rising bets for another interest rate cut by the Federal Reserve (Fed) next week. This, in turn, suggests that the path of least resistance for the USD/JPY pair is to the downside. Japanese Yen bulls have the upper hand amid firming BoJ rate hike expectations Bank of Japan Governor Kazuo Ueda gave the clearest hint so far of an impending rate hike and said on Monday that the central bank would consider the pros and cons of raising its policy rate at its December 18-19 meeting. Ueda added that real interest rates were deeply negative, and another hike would still leave borrowing costs low. Japan’s S&P Global Composite PMI was finalized at 52.0 for November, marking the strongest reading since August. It also signaled an eighth consecutive month of private-sector expansion amid a quicker rise in services and a slower contraction in manufacturing. Moreover, business…

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Filed under: News - @ December 4, 2025 3:23 am