Yen holds near 158.50 as trade gap widens and BoJ stays cautious: Oct 21, 2026
The yen is holding near 158.00-158.50 as Japan's widening trade deficit and high energy prices weigh, with markets awaiting upcoming inflation figures for direction. Bank of Japan expectations remain mixed, with reports of caution and a possible steady decision alongside an upgraded inflation forecast, even as most economists expect a move to 1.50% in December with focus on wage-driven inflation.
Updated
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The day on the wire
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Each tick is a headline first seen that day.
Headlines (10)
First seen on October 21
- Japan’s inflation figures are next for a Yen stuck near 158.00FXStreet
- BoJ expected to hike in December, not in October – Reuters pollFXStreet
- Japan’s Katayama sees no gap with BOJ, says wage-driven inflation is nearInvestingLive
- Japanese Yen faces challenges as Japan’s Trade Deficit widens, BoJ signals cautionFXStreet
Carried over from earlier days
- Japanese Yen extends range play around 158.00 vs USD as intervention risks limit lossesFXStreet
- Japanese Yen flatlines near 158.50 as markets seek directionFXStreet
- Daiwa: BOJ shifts focus from reaching 2% inflation to keeping it there, wages hold the keyInvestingLive
- BOJ reportedly may upgrade inflation forecast, hold rates steady at next week's meetingInvestingLive
- Yen Under Double Pressure: High Energy Prices and a Tight Fed Complicate MattersInvesting.com
- BOJ seen lifting rates to 1.50% in December as 69% of economists expect a Q4 hikeInvestingLive
Scheduled events
As of
| Event | Forecast | Currency |
|---|---|---|
| Wednesday, October 21 | ||
| Crude Oil Inventories | -0.1M | USD |
| Thursday, October 22 | ||
| Unemployment Claims | 200K | USD |
| CB Leading Index m/m | -0.1% | USD |
| Natural Gas Storage | 83B | USD |
| National Core CPI y/y | 2.1% | JPY |
| Friday, October 23 | ||
| Flash Manufacturing PMI | 54.5 | JPY |
| Flash Manufacturing PMI | 55.4 | USD |
| Flash Services PMI | 57.8 | USD |