Post #15986

USD/JPY Wobbles as BOJ Keeps April Hike in Play and Fed Stays Restrictive USD/JPY is reacting to a widening policy split: BOJ hawkishness vs. Fed “higher-for-longer” uncertainty. With both sides in play, expect choppy price action and fast intraday swings as rates and risk sentiment reprice. The yen firmed after Governor Ueda’s remarks were read as hawkish. The BOJ held rates at 0.75%, but Ueda kept the door open to an April hike by emphasizing the bank will keep studying incoming data and improve how it tracks CPI—signaling tightening is still on the table. At the same time, oil is surging again on attacks tied to Middle East energy infrastructure, reviving inflation risk and complicating central bank decisions. On the U.S. side, the Fed held rates steady, while Powell stressed uncertainty and made it clear cuts depend on inflation moving closer to target. Markets have responded by pushing easing expectations further out and keeping USD supported near recent highs. - Alan