The Japanese Yen (JPY) is underperforming as markets anticipate a 25 basis point interest rate hike from the Bank of Japan (BOJ) on December 19. BOJ Governor Ueda has indicated moderate inflation risks but highlighted ongoing upward pressures on wages. This outlook is contributing to a weakening of the JPY against the US Dollar (USD).
As a result, analysts at BBH project that the USD/JPY currency pair could fall towards the 140 level, driven by diverging yield differentials between the US and Japan. The anticipated BOJ policy shift could enhance the volatility in trading, prompting investors to reassess their positions in light of the evolving market dynamics.
About FX Killer Trader Incubation Program
Want to become a professional trader? FX Killer offers a completely free professional trader training program. We provide systematic courses, practical training, and professional mentorship to help you grow from beginner to full-time trader.
👉 Join Free Training Program | Trading Psychology Assessment
Data Source: FX Killer Analysis Team Updated: 2025-12-09 11:40
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.