The Japanese Yen (JPY) has shown strong resilience against a weakening US Dollar (USD), rising for the second consecutive day and reaching a one-and-a-half-week high during Tuesday's Asian session. The JPY/USD exchange rate reflects a growing belief among investors that the Bank of Japan (BoJ) is poised to implement an interest rate hike this week, bolstering the currency's bullish momentum.
This upward trend in the JPY is fueled by expectations of monetary policy divergence between the BoJ and the Federal Reserve. As traders anticipate tighter monetary conditions from the BoJ, the market sentiment shifts, favoring the Yen. Consequently, this movement could lead to further fluctuations in the JPY/USD pair as market participants adjust their positions ahead of the anticipated BoJ announcement.
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Data Source: FX Killer Analysis Team Updated: 2025-12-16 07:22
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.