USD/JPY: Dollar Hits Four-Month Top Near ¥150 as Bank of Japan Dents the Yen with a Rate Hold

Global uncertainty and internal jitters backed a rate hold at 0.5% for the fifth time in a row. The greenback spotted an opening and went for it.

📌 BoJ Holds, Yen Slips

• The USDJPY pair soared to a four-month high near ¥150 on Thursday after the Bank of Japan held its key interest rate at 0.5%, marking the fifth straight decision to stand pat.
• While widely expected, the rate hold — paired with cautious commentary — dealt another blow to the yen, which has been on the defensive amid rising global volatility and domestic inflation pressures.
• The BoJ's unanimous decision to keep rates steady comes as it raised inflation forecasts, signaling cost pressures remain sticky. The dollar-yen jumped sharply to challenge the psychological threshold even as it’s still too far from levels that in the past have invited government intervention.

📣 Ueda Sees “Uncertainty,” But No Rush

• Yen weakness deepened as traders interpreted the central bank’s stance as dovish, especially in contrast to a US Fed that remains tight-lipped about future cuts.
• BoJ Governor Kazuo Ueda praised the recent US-Japan trade deal — which imposed 15% tariffs on Japanese exports — as a “big step forward” in stabilizing trade dynamics. Still, Ueda admitted uncertainty remains high, stating: “It’s not as if the fog will all clear at once.”
• He rejected criticism that the BoJ is lagging behind on inflation and rate hikes, noting the risks of inaction are “not particularly high” at present — a comment seen by markets as a signal of continued policy patience.

📈 Dollar Stays Strong as Fed Holds

• The BoJ’s decision came just after the Federal Reserve left its own rates unchanged, while Fed Chair Jay Powell pushed back against calls from President Trump for immediate cuts.
• The interest rate differential between the US and Japan continues to favor the dollar, providing upward momentum for the volatile pair.
• With no immediate hike in sight from the BoJ, the yen may continue to weaken — unless inflation flares further or geopolitical pressure forces a course correction.