USD/JPY Under Pressure as BOJ Signals More Rate Hikes; EUR Dips on Inflation

USD/JPY faces renewed downside pressure amid reports of possible Japanese intervention and hawkish commentary from BOJ Governor Ueda, who stated the central bank will continue raising interest rates in response to economic and financial conditions. Ueda emphasized that monetary policy will be conducted so as not to fall behind the curve, signaling a more aggressive tightening stance. While the BOJ left rates unchanged as expected at its latest meeting, the forward guidance marks a notable shift in tone that has strengthened the yen. Meanwhile, Eurozone inflation ticked higher in July, adding complexity to the ECB's rate outlook and weighing modestly on EUR crosses. The combination of potential FX intervention and hawkish BOJ rhetoric creates a challenging environment for USD/JPY bulls. Traders should monitor the 148.00-150.00 zone as a key battleground, with intervention risks capping upside attempts. Near-term, the divergence between a tightening BOJ and a potentially pausing Fed could sustain yen strength, making short USD/JPY positions increasingly attractive for momentum traders.