USD/JPY dips as BOJ hike odds rise – BBH

USD/JPY slipped below 152.00 as traders doubled the odds of a Bank of Japan (BOJ) rate hike to 20% after US Treasury Secretary Bessent backed Japan’s policy autonomy. Markets now expect the BOJ to either resume tightening or deliver a hawkish hold — both scenarios supportive for JPY, BBH FX analysts report.

Bessent signals support for BOJ policy flexibility

"USD/JPY briefly dipped below 152.00, with swaps market doubling odds of a BOJ rate hike tomorrow to 20% following comments by US Treasury Secretary Scott Bessent."

"Bessent argued that Japanese government’s 'willingness to allow the Bank of Japan policy space will be key to anchoring inflation expectations and avoiding excess exchange rate volatility'. We anticipate the BOJ to resume raising rates this week or at the very least deliver a hawkish hold which can further lift the beleaguered JPY."

Oct 29, 2025

Gold Price Forecast: XAU/USD snaps three-day losing streak as Fed’s policy takes centre stage

Gold price (XAU/USD) snaps its three-day losing streak, trading 1.70% higher to near $4,020 during the European trading session on Wednesday. The precious metal bounces back ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.

EUR/JPY returns above 177.00, Yen eases ahead of the BoJ's decision

The Euro reversal from Monday's highs at 178.23 against the Japanese Yen has been halted at the 176.65 area on Wednesday's Early European session, and the pair bounced back to levels above 177.30 at the time of writing, which keeps the pair's broader bullish trend intact.