USD/JPY news for July 31, 2026

Bank of Japan held rates unchanged, citing inflation around or slightly above its 2% target, while market attention turns to Governor Ueda's guidance for policy signals. Separate reports mention suspected yen intervention and broader central bank decisions, leaving the yen's trajectory closely tied to the BOJ's inflation outlook and communication.

Updated 19:35 UTC

How the day unfolded

1. 07:37 UTC

   The Bank of Japan held its policy rate at 1% as expected, while warning that underlying inflation may exceed its 2% target. The yen weakened after the decision, with EUR/JPY rallying above 185.00, and market focus now turns to Governor Ueda's guidance. Meanwhile, suspected intervention and the Fed's steady policy add to the complex backdrop for USD/JPY.

2. 16:35 UTC

   The Bank of Japan held rates at 1%, sticking to its view of inflation around 2% but warning that underlying price pressures could exceed that target, drawing attention to Governor Ueda's guidance. The decision weighed on the yen, contributing to EUR/JPY's rally above 185.00, while USD/JPY remains influenced by the expected Fed hold and broader central bank divergences.

Headlines (13)

• Bank of Japan normalisation will continue amid market tensions
  www.ft.com · Jul 29, 05:14 UTC
• A Fed hold, a Warsh non-answer, and one day of cover for the Japanese Yen
  www.fxstreet.com · Jul 29, 22:47 UTC
• Investors warn BoJ faces test to inflation-fighting credibility
  www.ft.com · Jul 30, 01:06 UTC
• Event Guide: BOJ Monetary Policy Statement (July 2026)
  www.babypips.com · Jul 30, 01:48 UTC
• Gold and FX Drive VT Markets to $8 Trillion H1 Trading Volume, Up 212%
  www.financemagnates.com · Jul 30, 12:45 UTC
• The Federal Reserve Has Eroded 97% of Your Dollar’s Value Since 1913. Here’s the Mechanism.
  goldsilver.com · Jul 30, 21:21 UTC
• Bank of Japan set to keep interest rates unchanged after suspected Yen intervention
  www.fxstreet.com · Jul 30, 22:01 UTC
• Yen’s Focus on BOJ Gov. Ueda’s Guidance
  www.wsj.com · 00:40 UTC
• EUR/JPY rallies further above 185.00 against Japanese Yen after BoJ’s policy decision
  www.fxstreet.com · 03:21 UTC
• BOJ holds rates at 1%, warns of underlying inflation exceeding 2% target
  www.cnbc.com · 03:36 UTC
• Bank of Japan Stands Pat, Continues to See Inflation Around 2%
  www.wsj.com · 03:57 UTC
• How have interest rate expectations changed after this week's events?
  investinglive.com · 11:00 UTC
• Three central banks held rates this week. Here's what has them all worried
  www.fxstreet.com · 13:39 UTC

Scheduled events

As of 22:35 UTC

• 2026-07-31 — BOJ Policy Rate · forecast <1.00% · JPY
• 2026-07-31 — BOJ Outlook Report · JPY
• 2026-07-31 — Monetary Policy Statement · JPY
• 2026-07-31 — Housing Starts y/y · forecast 12.7% · JPY
• 2026-07-31 — BOJ Press Conference · JPY
• 2026-07-31 — Employment Cost Index q/q · forecast 0.8% · USD
• 2026-07-31 — Chicago PMI · forecast 55.9 · USD
• 2026-07-31 — Revised UoM Inflation Expectations · USD