USD/JPY extends gains as Ueda delivers more dovish messaging

Within the greater image, the pair is seeing a neat double-bottom bounce off the 140.00 mark. And the soar larger immediately sees the pair now transfer to its highest in three weeks. It is largely a yen transfer right here because the BOJ left rates of interest unchanged, earlier than governor Ueda got here out to ship some much less hawkish (extra dovish) messaging.

Ueda stated that there is a number of uncertainty now stemming from US tariffs and the way that’s impacting the worldwide outlook. He provides that inflation and wage pressures at the moment are anticipated to chill and that there will likely be a delay to reaching their 2% worth goal. On the latter, Ueda says that it’s “not easy” anymore to simply discuss hitting the inflation goal as such.

Total, it factors to an extra pause within the present financial coverage stance. As issues stand, that’s more likely to lengthen to June on the very least.