Monday's rise won back about half of what USD/JPY lost on October 22 and 23. Yen buying in Tokyo had taken it through 157.00 to its lowest since September 18. On Monday it rose from just above 156.50 to just above 157.50 and ended near its high for the session, two days before the Fed's decision.
Brown Brothers Harriman (BBH) strategist Elias Haddad describes the Japanese Yen (JPY) as leading gains and acting as an ultimate refuge currency, supported by hotter Consumer Price Index (CPI) and steady Purchasing Managers' Index (PMI) data that back additional Bank of Japan (BoJ) hikes. However, with inflation still below BoJ projections and limited near-term hike odds, he expects USD/JPY to hold in a defined range unless risk-off intensifies.
USD/JPY gains ground after registering modest losses in the previous day, trading around 158.30 during Asian hours on Wednesday. The Japanese Yen (JPY) faces mounting challenges after the latest release of Japan's Ministry of Finance merchandise Trade Balance report.