The USDJPY currency pair was still hovering around the upper resistance of the consolidation before the start of today's European session, settling around the highest levels seen on the pair since July 2025, but sentiment reversed after Bloomberg reported that the BoJ was still considering whether January would be an appropriate month for an interest rate hike.
The BOJ is said to be considering raising its “core” inflation forecast for both fiscal year 2024 and 2025. The hawkish turn on the pair means that USDJPY trading could be even more volatile on the day of the NFP data release at 1:30 pm GMT.
The currency pair lost heavily after the BoJ announcement. Source: xStation
In the long term, however, USDJPY remains in a solid uptrend. Source: xStation
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