With expectations of an earlier rate hike from the Bank of Japan, the USD/JPY fell to the 151 yen level.

【2/6Market Overview

In Tokyo time, Bank of Japan Policy Board member Tamura said about the neutral rate that it is “at least1％ level,” and that to achieve the price target, “in the second half of fiscal year 2025 we will need to raise short-term interest rates to at least1％ level.” This heightened expectations for an earlier rate hike by the BOJ, and the dollar/yen fell below the previous day's low of152.12yen to151.81yen, after which it recovered to around the mid-152s. In European hours, the dollar/yen retraced to152.89yen, but then traded in the high-152s.152yen area. In New York time,10–12month US nonfarm payrolls and10–12month US unit labor costs were weaker than expected, leading to dollar selling. With expectations rising that the BOJ could raise rates sooner, the dollar/yen fell to151.24yen.

【2/7Market Outlook