USD/JPY Bounces from Sub-159.00 Dip, Back Near Session Highs on Yen Weakness
USD/JPY recovered from an intraday drop below 159.00 to trade near the top of its daily range in early European hours, with the yen under pressure from Japan's fiscal challenges and the wide US-Japan interest rate gap.
The USD/JPY pair reversed an early slide that took it under the 159.00 handle during Monday's European morning, climbing back to the upper end of the day's range.
Traders cited Japan's fiscal woes and the persistent divergence between US and Japanese monetary policy as key drags on the yen. The Bank of Japan's cautious stance contrasts with the Federal Reserve's higher-for-longer rate outlook, keeping the rate gap a headwind for the Japanese currency.
The rebound suggests dip-buying interest remains firm above the 158.00 area, with near-term focus on whether the pair can sustain momentum toward recent multi-decade peaks.
Source: FXStreet Forex News