[USD/JPY] Bank of Japan Likely to Hold Off on Rate Hike

During Tokyo trading hours, reports from some news agencies suggested that the Bank of Japan (BOJ) might hold off on raising interest rates at their December meeting. This news pushed the USD/JPY pair higher, reaching 151.22 in the New York market.

However, when the U.S. ISM Non-Manufacturing PMI (a key measure of service sector activity) came in weaker than expected, the dollar fell back, briefly dipping below 150. Later, hawkish comments (statements supporting high interest rates) from the St. Louis Fed President and Federal Reserve Chair Powell helped the dollar recover, closing near the mid-150 range.

The market does not seem to expect major changes in the BOJ’s or the Fed’s monetary policies. For now, the focus is on the upcoming U.S. employment report tomorrow, which may limit market movement.

That said, with low trading volume, short-term price swings could happen, but USD/JPY is likely to settle around the 150 level, which seems comfortable for the market.