🗞️ Yen Strength Dominates on BOJ Headlines — U.S. Jobless Claims in Focus

🎯 Today’s Theme

After yesterday’s broad yen weakness,
Tokyo markets reversed course with yen strength taking the lead.

🇯🇵 Drivers Behind Yen Strength

① BOJ Governor Kazuo Ueda

Kazuo Ueda

Signaled openness toward earlier rate hikes.

② BOJ Board Member Hajime Takata (hawkish)

Hajime Takata

Warned of the risk that the BOJ could “fall behind” in a global rate-hiking environment.

③ Prime Minister Sanae Takaichi

Sanae Takaichi

“Closely monitoring FX with a high sense of urgency.”
“Monetary policy is not aimed at currency targeting.”

👉 Tone shifted toward restraining excessive yen weakness.
👉 A reversal from the prior day’s easing of early rate-hike expectations.

💴 FX Price Action

USD/JPY: Pulled back from the low 156s into the mid-155s.
Yen buying dominated the Tokyo session.

After London opened, markets stabilized somewhat.

🌍 London Market Dynamics

The Dollar Index (DXY):

Tokyo morning: 97.70 → fell to 97.48
Early London: rebounded to 97.746
Current: 97.71 (+0.01%)

In Tokyo, USD weakness was driven mainly by USD/JPY.
In London, declines in EUR/USD and GBP/USD helped stabilize the dollar.

🇬🇧 Pound Under Pressure

Ahead of the Manchester by-election, political uncertainty weighed on GBP.

Three-way tight race
Caution ahead of results

👉 Selling pressure on the pound.

🇺🇸 NY Session Focus

🔎 U.S. Initial Jobless Claims

(8:30 AM ET)

Forecast: 216K
Previous: 206K
4-week average: 219K

👉 A reading above 220K could accelerate dollar selling.

📊 Other Data

Eurozone M3
Eurozone Economic Sentiment
South Africa PPI
Canada Current Account

🎙 Speakers & Events

ECB President Christine Lagarde
Fed Vice Chair Michelle Bowman
BOE Deputy Governor Clare Lombardelli
U.S. 7-year Treasury auction ($44B)

🧭 What Comes Next?

✔ If European and U.S. equities weaken → yen strength may extend
✔ If U.S. labor data disappoints → dollar selling could accelerate
✔ If equities recover → yen gains may fade

🔎 Summary

Today’s move is driven by BOJ-related headlines fueling yen strength.

However, the broader trend is not yet confirmed.

U.S. jobless claims could determine the next direction for the dollar.

Short-term markets remain sensitive to headlines and equity sentiment —
a nervous, reactive environment.

🗞️ Yen Strength Dominates on BOJ Headlines — U.S. Jobless Claims in Focus