USD/JPY advances to approximately 159.85 during the early European session on Tuesday. Japan’s 10-Year bond yield has reached 3% for the first time since 1996. Bessent anticipates that the Bank of Japan will implement measures to strengthen the Japanese Yen. The USD/JPY pair advances to approximately 159.85 in the early European trading session on Tuesday. Japan’s 10-Year bond yield reached 3% for the first time in three decades following indications from US Treasury Secretary Scott Bessent that the United States desires a more aggressive interest rate increase from the Bank of Japan.
Bessent stated on Tuesday his belief that the Japanese government and central bank will implement measures resulting in a stronger Japanese Yen, according to source. However, the JPY remains weak against the US Dollar despite Bessent’s comments. Japanese Finance Minister Satsuki Katayama stated that she met with Bessent and concurred that orderly JPY movement is essential for global market stability. The United States and Japan have affirmed that ongoing and collaborative actions will aid in achieving this shared objective. Strategists note that the “outlook for relative central bank policy remains front and center into the BoJ’s September 18 decision,” with attention increasingly drawn to international commentary on the Bank of Japan’s next move.
They highlight media reports that US Secretary Bessent expects Governor Ueda “to do the right thing,” underscoring the external pressure surrounding the meeting. Scotiabank also points out that Board member Takata is scheduled to speak later this week, an appearance that could help shape expectations ahead of the September policy decision. In the daily chart, USD/JPY maintains a constrained tone as it remains below the 100-day moving average and the upper Bollinger band. Price remains above the 20-day Bollinger middle band, indicating persistent demand, while the Relative Strength Index at 50.75 shows a slight positive inclination but does not yet signal robust directional conviction.
On the topside, immediate resistance is situated at the 100-day moving average at 160.00, followed by the upper Bollinger band near 160.35, where renewed selling pressure may materialise. On the downside, initial support aligns with the 20-day Bollinger middle band at 159.15, ahead of a deeper cushion at the lower Bollinger band near 157.90, where buyers would be expected to defend the broader uptrend.
