In late December 2023, the USD/JPY retreated to a Q4 low of 140.249. A robust US economy and US inflation overshadowed the market bets on a Bank of Japan pivot from negative rates. However, the Bank of Japan contributed to the USD/JPY return to 150. Recently, the Bank of Japan has sent mixed signals on the timelines for a pivot from negative rates. More significantly, the BoJ poured cold water over market expectations of a hawkish BoJ rate path. In February, the Bank of Japan Deputy Governor Shinichi Uchida alerted investors conditions are becoming ripe for a pivot from negative rates. However, the Deputy Governor ... (full story)