Yen Steadies Near Post-Intervention Highs Ahead of BoJ Minutes
USD/JPY trades with a soft tone near 156.90 as the yen holds gains from last week's suspected intervention and a hawkish Bank of Japan policy shift.
The Japanese yen remained firm on Monday, keeping most of the ground it gained at the end of last week. USD/JPY was quoted around the 156.90 area, pressured by a combination of official yen-buying intervention and a comparatively hawkish signal from the Bank of Japan.
The BoJ's latest policy announcement triggered a sharp unwind of short-yen positions, amplifying the move. Markets now await the release of the BoJ's meeting minutes for further clues on the timing and pace of policy normalization.
The pair's soft tone reflects reduced carry-trade appetite and heightened caution ahead of potential follow-through by Japanese authorities. Traders are monitoring whether the yen can extend its recovery or if the dollar finds a floor near current levels.
Source: FXStreet Forex News