{"id":36443,"date":"2025-12-10T14:36:05","date_gmt":"2025-12-10T06:36:05","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=36443"},"modified":"2025-12-10T14:36:05","modified_gmt":"2025-12-10T06:36:05","slug":"usdjpy-edges-higher-ahead-of-fed-and-boj","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/usdjpy-edges-higher-ahead-of-fed-and-boj\/","title":{"rendered":"USDJPY Edges Higher Ahead of Fed and BOJ"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/yen6-1024x559.png\" alt=\"\" class=\"wp-image-17044\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USDJPY trades near 156.72 after sliding 0.6 percent overnight toward 157.00<\/li>\n\n\n\n<li>Markets await Fed policy meeting and potential BOJ rate hike next week<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The yen was pinned near a key resistance level on Wednesday after tumbling sharply overnight, with USDJPY hovering near 156.72. Despite speculation that the Bank of Japan may raise interest rates at its upcoming meeting, the currency struggled to find traction.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Bank of Japan Governor Kazuo Ueda said the central bank is getting closer to attaining its inflation target <a href=\"https:\/\/t.co\/NY84dCOBcs\">https:\/\/t.co\/NY84dCOBcs<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1998348949330002008?ref_src=twsrc%5Etfw\">December 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The move came without a clear trigger, highlighting how fragile sentiment remains around Japan\u2019s low-yielding environment.<\/p>\n\n\n\n<p>The broader narrative continues to centre on interest rate differentials. While the Fed is widely expected to cut rates by 25 basis points this week, the US still offers one of the highest nominal yields among major economies.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The market sees a Fed rate cut this week as a near certainty, but policymakers are expected to say that the bar for another one is high. Find out what\u2019s moving the markets \u2014 and why \u2014 with Market Talk, Reuters daily chat with economic experts <a href=\"https:\/\/t.co\/kGRSIhFWXx\">pic.twitter.com\/kGRSIhFWXx<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1998463909682880808?ref_src=twsrc%5Etfw\">December 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The 10-year Treasury yield is holding steady above 4.17 percent, maintaining upward pressure on the dollar against the yen.<\/p>\n\n\n\n<p>Even with the Bank of Japan expected to deliver a small rate hike, markets see little chance of a sustained tightening cycle.<\/p>\n\n\n\n<p>Japan\u2019s <a href=\"https:\/\/t.co\/F8IOrHscpr\" target=\"_blank\" rel=\"noopener\" title=\"\">fiscal stimulus plans<\/a> and dovish forward guidance continue to curb bullish yen sentiment. Against other major currencies like the euro and Australian dollar, the yen also remains soft, with EURJPY near record highs and AUDJPY up 0.8 percent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Fed Looms Large<\/h2>\n\n\n\n<p>All eyes are now on the Federal Reserve\u2019s decision later in the day. Futures imply a 25-basis-point cut is almost certain, but the focus will shift to Chair Powell\u2019s press conference and the 2026 dot plot.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Powell is seen getting another rate cut in his last likely meeting before Trump names his successor as Fed chair <a href=\"https:\/\/t.co\/CGHwSfpYmq\">https:\/\/t.co\/CGHwSfpYmq<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1998364062783095283?ref_src=twsrc%5Etfw\">December 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Recent data shows US job openings remain strong, casting doubt on the depth of next year\u2019s easing cycle.<\/p>\n\n\n\n<p>Kevin Hassett, frontrunner to succeed Jerome Powell, stated this week that there is \u201cplenty of room\u201d to cut rates, but also warned that rising inflation would change the calculation.<\/p>\n\n\n\n<p>Markets are still pricing in two more rate cuts next year, but have pulled back from more aggressive bets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>USDJPY is trading at <strong>156.72<\/strong>, continuing to hover just below the recent swing high of <strong>157.888<\/strong> as bullish pressure holds firm. The pair remains well supported above the 30-day moving average, which is trending higher and providing a dynamic base around the <strong>155.00<\/strong> area.<\/p>\n\n\n\n<p>The 5- and 10-day MAs have also just curled upward again, hinting at renewed upward momentum after a brief consolidation.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/WhatsApp-Image-2025-12-10-at-092856-1024x446.jpg\" alt=\"\" class=\"wp-image-36455\" \/><\/figure>\n\n\n\n<p>The MACD is close to a bullish crossover, with the MACD line approaching the signal line from below. While the histogram remains slightly negative, momentum is beginning to shift favourably toward buyers again.<\/p>\n\n\n\n<p>A break and close above <strong>158.00<\/strong> would confirm trend continuation and likely open a move toward <strong>160.00<\/strong>, while immediate support remains at <strong>155.00<\/strong> and stronger support near <strong>153.50<\/strong>.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/forex\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Forex<\/a> on <a href=\"http:\/\/www.vtmarkets.com\/\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets<\/a> today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Japanese yen remains under pressure as markets brace for a potential Fed cut and a Bank of Japan pivot. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":17044,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10,45],"class_list":["post-36443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-forex","tag-yen"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=36443"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17044"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=36443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=36443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=36443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}