USD/JPY dips below 157.50 after stronger Japanese wage growth and hawkish central bank signals weigh on the dollar.
The Japanese Yen strengthened against the USD during Wednesday’s Asian session, with the USD/JPY pair retreating below the 157.50 mark. The move follows upbeat wage data and hawkish minutes from the Bank of Japan’s latest meeting, reinforcing expectations of a shift away from ultra-loose monetary policy.
The pair had rebounded earlier this week from a low near 155.20, its weakest level since early May. However, the bounce lacked momentum as investors digested signs of sustained inflationary pressures in Japan, contrasting with a softer dollar amid mixed U.S. economic signals.
Spot prices showed limited follow-through selling, holding just above the mid-157.00s, as traders await further cues on the BoJ’s policy trajectory and U.S. inflation data later this week.