BOJ Governor's Forward Guidance Set to Be Key Catalyst for USD/JPY, Asia FX Sentiment -- Market Talk

Dow Jones01-23

0212 GMT - BOJ Gov. Ueda's forward guidance at today's press conference is poised to be a key catalyst for USD/JPY and broader Asia FX sentiment, MUFG Bank's Lloyd Chan says in a research report. "In particular, markets will likely watch for whether Governor Ueda opens the door to an earlier policy rate hike should the yen weaken further," the senior currency analyst says. "Any hint that FX stability is gaining weight as a policy consideration could inject volatility into JPY crosses," Chan says. However, near-term bias is still for a weak yen, especially with Japan PM Takaichi's call for a snap election that adds a "layer of uncertainty" for the yen, Chan adds. USD/JPY is 0.2% higher at 158.65. (ronnie.harui@wsj.com)

 

(END) Dow Jones Newswires

January 22, 2026 21:12 ET (02:12 GMT)

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