USD/JPY Remains Firm Near 154.00 on Lingering BoJ Policy Uncertainty
USD/JPY is trading around 153.90 in early Asian hours, staying close to the eight-month peak of 154.49 reached on November 4. The dollar’s strength reflects continued yen weakness as investors grapple with an unclear interest-rate path from the Bank of Japan.
BOJ board member Junko Nakagawa said on Monday that the central bank will proceed cautiously, given ongoing uncertainty in global trade policies. She warned that Japanese corporate profits may suffer from tariff pressures but should rebound as overseas economies recover and domestic consumption rises on firmer real wages. Nakagawa also noted that medium- to long-term inflation expectations are slowly aligning with the BOJ’s 2% target.
Minutes from October’s BOJ policy meeting confirmed that uncertainty persists over when—and by how much—the bank might raise its policy rate. The summary suggested that rate adjustments would depend on a sustained improvement in the economic and price outlook, stable global financial conditions, and continued wage growth momentum among companies.
Meanwhile, the US dollar could find additional support as the US Senate moved closer on Sunday toward approving a short-term funding bill to end the federal shutdown. Lawmakers voted 60–40 on an initial extension of enhanced Affordable Care Act subsidies, but the measure still needs House approval and the president’s signature, a process that could take several days, according to Reuters.
