USD/JPY remains on the back foot on Wednesday but lacks follow-through selling as the US Dollar (USD) recovers following the Treasury’s announcement of a larger bond buyback. The pair trades around 153.50 after briefly falling below 153.00, its lowest level since February.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight ongoing Japanese Yen (JPY) outperformance, with USD/JPY drifting toward key support near 153 and the 2026 low around 152. Markets fully price a 25 bp Bank of Japan (BoJ) hike on September 18.

The Pound Sterling advances on Wednesday during the North American session, up 0.15% at 1.3560, with no clear catalyst behind the move, as the conflict in the Middle East prolongs, while traders brace for US inflation data release.

Rabobank’s Mauricio Une and Renan Alves note the Brazilian Real (BRL) appreciated 1.26% against the Dollar over the past week, with USD/BRL around 5.13.

USD/CHF edges lower on Wednesday as broad weakness in the US Dollar (USD) allows the Swiss Franc (CHF) to regain some ground. At the time of writing, the pair trades around 0.8078, down roughly 0.20% on the day.

ING analysts Muhammet Mercan, Frantisek Taborsky and James Wilson say normalising liquidity and a lower effective funding rate have pushed market pricing closer to their Central Bank of Turkey rate view for 2026.

Scotiabank strategists Shaun Osborne and Eric Theoret report EUR/USD is flat in North American trade after touching a one-week high, with fundamentals supported by firmer European Central Bank (ECB) rate expectations on higher Oil prices.

ING’s Chris Turner notes USD/BRL is drifting towards 5.05/5.07 as election polls show challenger Flavio Bolsonaro overtaking President Lula in a run-off, with prediction markets still favoring Lula but by a shrinking margin.

Scotiabank strategists Shaun Osborne and Eric Theoret describe the Canadian Dollar (CAD) as steady despite renewed US–Canada trade tensions and targeted import bans. They highlight improving CAD fundamentals and a lower fair value estimate for USD/CAD near 1.3736.

EUR/USD trades on the front foot on Wednesday as broad US Dollar (USD) weakness, led by a sharp rally in the Japanese Yen (JPY), supports the pair. At the time of writing, EUR/USD trades around 1.1647, up 0.20% on the day.

The Japanese Yen (JPY) continues to build upward momentum, pushing USD/JPY down to 152.88 before consolidating around 153.26 as markets fully price in a 25 basis point rate hike from the Bank of Japan (BoJ) in September.

BNY’s Geoff Yu notes USD/JPY slipping back below 153 as markets heed U.S. Treasury Secretary Scott Bessent’s warning on testing Japanese Yen intervention. The report stresses that a sustained move depends on a broader Bank of Japan tightening cycle.

DBS Group Research strategist Chang Wei Liang reiterates that USD/JPY has likely peaked for this cycle, with the pair retreating toward 153 as the Japanese Yen (JPY) leads G10 and Asian currencies.

EUR/GBP trades in a narrow range on Wednesday as buyers struggle to extend Tuesday’s rebound. The 100-period Simple Moving Average (SMA) at 0.8599 limits the immediate upside, although momentum indicators retain a modest bullish bias.

The British Pound (GBP) trades 0.3% lower at around 207.80 against the Japanese Yen (JPY) during the European trading session on Wednesday.

USD/JPY declines 0.39% on Wednesday and trades around 153.40 at the time of writing. The Japanese Yen (JPY) benefits from renewed demand as investors increase their bets on further monetary tightening by the Bank of Japan (BoJ).

Commerzbank’s Antje Praefcke argues that despite currently low Swedish inflation readings, the Riksbank is likely to maintain its guidance that the policy rate could rise by year-end.

The Euro (EUR) gives back its early gains and flattens at around 1.1625 against the US Dollar (USD) during the European trading session on Wednesday. The major currency pair falls back as the US Dollar recovers its early losses.

MUFG’s Lee Hardman notes that the Japanese Yen (JPY) has strengthened, driving USD/JPY back towards 153.00, as comments from US Treasury Secretary Scott Bessent reinforce expectations of policy changes in Japan.

AUD/JPY declines 0.27% on Wednesday and trades around 110.80 at the time of writing.

USD/CAD extends its losses for the third consecutive day, trading around 1.3780 during the European hours on Wednesday. The technical analysis of the daily chart indicates the pair is falling within the descending channel pattern, signalling a persistent bearish bias.

The USD/CHF pair reverses modest intraday losses and climbs to the top end of its daily range during the first half of the European session on Wednesday.

The Australian Dollar (AUD) resumed its uptrend on Wednesday, with the US Dollar (USD) losing ground against its main peers despite the dismal market mood, while the rebound in Chinese inflation eased concerns about domestic demand.

The Euro (EUR) is down 0.27% to near 178.50 against the Japanese Yen (JPY) during the European trading session on Wednesday, closer to its almost 10-month low of 177.85 posted the previous day.

ING’s Chris Turner describes EUR/USD near 1.1600 as mid-range since April, noting Euro terms-of-trade deterioration should weigh more on the pair. ING expects a dovish ECB hike that fails to validate additional tightening priced by markets.

Here is what you need to know on Wednesday, September 9:

The New Zealand Dollar (NZD) trades 0.13% higher at around 0.5860 against the US Dollar (USD) during the European trading session on Wednesday, but remains inside Tuesday's trading range.

EUR/GBP remains steady after experiencing volatility, hovering around 0.8580 during European hours on Wednesday. However, the currency cross may gain ground as the Euro (EUR) could receive support ahead of the looming European Central Bank (ECB) monetary policy decision.

The Japanese Yen (JPY) trades firmly against its major currency peers this week. The USD/JPY pair is down 0.63% in the European trading session on Wednesday and 1.85% so far this week at around 153.00.

The Euro (EUR) attempts to resume its uptrend against the US Dollar (USD) on Wednesday’s early European session despite the risk-off mood and the high Crude prices.