▼ BEARISH USD/JPY — Short Bounces; BoJ Hike + Oil Deflation Point to 157.00
The Asian session was driven by the Bank of Japan’s widely anticipated 25-basis-point rate hike to 1.00%, marking Japan’s highest policy rate since 1995 and reinforcing the country’s gradual exit from ultra-loose monetary policy. The yen strengthened modestly as USD/JPY traded near 160.26, while investors shifted focus to Wednesday’s FOMC decision under Fed Chair Kevin Warsh. Silver remained near historic highs around $69.39 despite mild profit-taking, supported by easing inflation expectations following the US-Iran peace agreement. Meanwhile, the Hang Seng slipped to 24,428 as technology and financial stocks faced selling pressure. In digital assets, Solana outperformed with strong gains, while Dogecoin and Bitcoin consolidated recent advances. Natural gas stayed under pressure near $3.13/MMBtu amid rising storage levels and weaker LNG exports. Markets now await the Fed’s policy outlook, which could set the tone for currencies, commodities, equities, and cryptocurrencies through the remainder of the week.
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