The post Japanese Yen steadies ahead of BoJ decision, limited downside expected appeared on BitcoinEthereumNews.com.

The Japanese Yen (JPY) stalls the previous day’s decline against a broadly recovering US Dollar (USD) and oscillates in a narrow trading range during the Asian session on Thursday. The near-term bias, meanwhile, seems tilted in favor of the JPY bulls amid firming expectations for an imminent rate hike by the Bank of Japan (BoJ) this week. Traders, however, seem reluctant and opt to wait for more cues about the BoJ’s future policy path. Hence, the focus will remain on the outcome of the BoJ rate decision on Friday and Governor Kazuo Ueda’s post-meeting press conference. Heading into the key central bank event risk, some repositioning trade might infuse volatility around the JPY amid worries about Japan’s worsening fiscal health. That said, hawkish BoJ expectations mark a significant divergence in comparison to rising bets for more interest rate cuts by the US Federal Reserve (Fed), which keeps a lid on the attempted USD recovery and should act as a tailwind for the lower-yielding JPY. Apart from this, a generally weaker tone around the equity markets should benefit the JPY’s safe-haven status and help limit any meaningful depreciating move. Japanese Yen bulls opt to wait for the highly anticipated BoJ policy update on Friday Traders turn cautious and refrain from placing aggressive directional bets around the Japanese Yen ahead of the start of a two-day Bank of Japan meeting this Thursday. The central bank will announce its policy decision on Friday and is widely expected to hike interest rates to 0.75%, or a three-decade high. Furthermore, recent reports suggest that the BoJ would likely maintain a pledge to keep raising interest rates, but stress that the pace will depend on how the economy reacts to each hike. Hence, comments from BoJ Governor Kazuo Ueda will be looked for cues about how…

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Filed under: News - @ December 18, 2025 4:29 am