The USD/JPY currency pair exhibited volatility on Thursday, trading around 158.20 yen with a 0.12% gain during the European session, according to FX Street. The pair briefly climbed to 158.50 before reversing to 157.83 and eventually closing at 158.06, as reported by UOB strategists Quek Ser Leang and Lee Sue Ann. This movement came amid broader US Dollar strength driven by hawkish Federal Open Market Committee (FOMC) minutes.
Despite the US Dollar's general firmness, Investing.com Forex cites BofA's view of downside risks for the USD/JPY pair in the near term. UOB forecasts a short-term bias shifting downward toward 157.40, with expected sideways trading within a 156.35 to 158.70 range over the next one to three weeks. Longer-term technical charts flag potential downside pressure on the pair.
For Japanese markets, these fluctuations highlight ongoing sensitivity to US monetary policy signals, which continue to influence currency and equity flows amid a complex global economic backdrop.