Japanese Yen weakens as BoJ's Ueda signals patience in policy normalization – TDS
The Japanese Yen (JPY) weakened after BoJ Governor Ueda struck a dovish tone, signaling patience in policy normalization and suggesting officials are comfortable with the currency’s current softness, even as global markets brace for a potential USD/JPY retest of March highs, TDS' Macro Strategist Al

The Japanese Yen (JPY) weakened after BoJ Governor Ueda struck a dovish tone, signaling patience in policy normalization and suggesting officials are comfortable with the currency’s current softness, even as global markets brace for a potential USD/JPY retest of March highs, TDS' Macro Strategist Alex Loo notes.

Japanese Yen weakens as BoJ's Ueda signals dovish stance on policy

"Yen bears have something to cheer again as Gov. Ueda press conference is full of dovish remarks. Gov. Ueda is advocating patience to observe the tariff impact after the US-Japan trade deal and downplayed that the Bank will be behind the curve in normalising policy."

"The nail in the coffin for JPY was when the BoJ stated 'the yen isn't deviating much from BoJ's view' which reads as the BoJ and government officials are happy for the JPY to trade on the weak side."

"A less dovish Powell overnight and firm US data gave the USD a boost, and an upside surprise in payrolls tomorrow could send USDJPY back to its March highs of 151.3 as it hovers around the 200dma (149.6)."

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