Dollar/Yen rises to the upper-147s following reports that the Bank of Japan is holding its policy interest rate

【7/25Market Overview

In Tokyo time, the USD/JPY saw5・10 as there was a real demand for dollar buying around the noon fix on Go-To Day, and due to the improvement in the previous day’s U.S. employment data,the possibility that the Fedwould be cautious about cutting rates led to the pair moving up to147.49yen. However, as the afternoon progressed, reports from sources suggested that the Bank of Japan could consider a rate hike within the year thanks to the Japan-U.S. tariff agreement, and that the BOJ could make policy decisions sooner based on data, which led to a yen-buy and a fall in USD/JPY to146.81yen. In European hours, with some reports suggesting thatthe last—30-31 the BOJ policy meeting may largely leave rates unchanged, USD/JPY rose to日147.94yen. In New York time, as U.S. 10-year Treasury yields declined, USD/JPY faced upside limits, trading in the mid- to upper-147s.NYTime, with the U.S.10year yield's decline weighing, USD/JPY hovered around the mid-to-upper 147s.

【7/28Market View