USD/JPY is experiencing downward pressure as Japan's economy minister signals preference for stable monetary policy ahead of the Bank of Japan's December meeting. The minister emphasized that monetary decisions rest with the BOJ while expressing hope for appropriate policy guidance to achieve the 2% inflation target. His comments suggest government reluctance toward near-term rate hikes, potentially delaying BOJ tightening expectations. The minister stressed the importance of stable movements in stock, FX, and bond markets reflecting fundamentals, pledging to monitor market developments with urgency. This dovish stance contrasts with recent hawkish BOJ signals, creating uncertainty for yen traders. Technical levels show USD/JPY testing support near 149.50, with resistance at 150.80. A clearer BOJ policy direction at the December 19 meeting will be crucial for determining whether the pair can sustain its recent range or break decisively in either direction.
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