Scotiabank strategists Shaun Osborne and Eric Theoret report that the Japanese Yen (JPY) is modestly firmer, with USD/JPY extending losses through prior intervention lows near 155, a move considered technically significant and potentially indicative of further Yen gains [1]. The JPY entered Tuesday’s North American session with a fractional 0.1% gain, fading most of its near-1% rally from the Asian session during early European trade [1].
The strategists highlight that the data calendar has been heavy, with key labor cash earnings (wage) data delivering a solid beat, while final Q2 GDP figures showed a minor downward adjustment, though these GDP figures are considered less policy relevant [1]. Market focus remains on government and central bank efforts to support the currency, as officials closely monitor price action and lean on hawkish messaging ahead of the September 18 Bank of Japan (BoJ) meeting, where a 25 basis point hike is almost fully priced in [1].
Technical analysis from Scotiabank points to support for USD/JPY around 153, with no additional support seen ahead of the 2026 lows near 152. Resistance is now expected above 155 [1].
CONCLUSION
The Japanese Yen has strengthened, testing key intervention levels as market participants anticipate a potential BoJ rate hike on September 18. Strong wage data and hawkish policy signals are supporting the currency, while technical levels suggest further Yen gains could be possible if USD/JPY breaks below current support.