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USD/JPY news for July 29, 2026

The Bank of Japan's continued normalization path is supporting the yen, while a Federal Reserve hold and a non-answer from potential Treasury pick Warsh provide some cover for the currency. Meanwhile, geopolitical tensions and shifting funding currency dynamics are adding to yen strength.

How the day unfolded

  1. USD/JPY continues to be driven by the yen's persistent weakness, with the pair hitting a 40-year low even as the Bank of Japan tightens policy. Geopolitical tensions have eased after Trump downplayed escalation risks and Oman's proposal for the Hormuz strait gained regional backing, reducing safe-haven demand for the yen. The dollar remains supported by expectations of Fed policy divergence, keeping USD/JPY elevated.

  2. The Japanese Yen remains under pressure, with USD/JPY hitting a 40-year low as the Bank of Japan's tightening has not translated into yen strength against the US dollar. Ongoing geopolitical developments and shifts in funding currencies like the Swiss franc continue to influence the pair, while softer Australian CPI data also weighed on the yen via cross flows.

  3. The Japanese yen continues to weaken against the US dollar despite the Bank of Japan's ongoing policy normalization, with USD/JPY hitting a 40-year low as interest rate differentials between the US and Japan persist. The pair is leading G10 FX volatility amid market tensions and expectations of further BoJ tightening.

  4. The Bank of Japan's commitment to policy normalisation continues, yet the Japanese yen remains weak against the US dollar, as noted by BNP Paribas. This divergence reflects broader market tensions and the yen's persistent funding currency status, despite central bank tightening.

  5. The yen remains under pressure against the dollar even as the Bank of Japan signals continued policy normalization, according to a BNP Paribas analysis. Meanwhile, broader market tensions and geopolitics, including Trump's warnings to Iran and regional backing for an Oman proposal on the Hormuz strait, contribute to the dollar's safe-haven appeal.

  6. The Bank of Japan continues its normalization path, but the yen remains weak against the US dollar as market tensions persist, with BNP Paribas noting BoJ tightening yet weaker JPY. Geopolitical headlines, including Trump's warnings to Iran, add to safe-haven demand for the dollar, supporting USDJPY.

  7. The Bank of Japan continues its policy normalization, which would typically support the yen, but the Japanese yen has weakened against the US dollar as noted by BNP Paribas. Meanwhile, geopolitical tensions and broader market factors, including the Swiss franc becoming a favorite funding currency, are influencing currency flows. The Australian dollar also fell against the yen following soft CPI data, contributing to yen weakness.

  8. The Bank of Japan's ongoing normalisation continues to prop up the yen, while geopolitical tensions from US-Iran rhetoric add uncertainty to risk sentiment, keeping USD/JPY under pressure as markets weigh these conflicting drivers.

  9. The US Dollar/Yen is under pressure as the Bank of Japan signals continued policy normalization, supporting the yen. Meanwhile, geopolitical developments, including Trump's warning to Iran and regional backing for Oman's Hormuz proposal, introduce uncertainty that could affect risk sentiment and the safe-haven yen.

  10. The Bank of Japan's commitment to policy normalisation continues to underpin the Japanese yen, while expectations of a Federal Reserve hold and uncertainty over trade policy are weighing on the US dollar. Meanwhile, geopolitical developments, including Trump's comments on Iran, may influence risk sentiment and demand for safe-haven currencies like the yen.

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As of 23:44 UTC

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Not investment advice. For informational purposes only.