The yen will face a critical moment of risk this week. Bank of Japan Governor Kazuo Ueda will speak after the central bank policy meeting on Friday. Although the Bank of Japan is generally expected to keep interest rates unchanged, yen traders will keep a close eye on Ueda's speech to prevent any mistakes that could cause the yen to fall further. The yen fell to its weakest level against the US dollar in June since 1986, and continued to weaken this month. The yen continues to be pressured by rising oil prices, concerns about fiscal policy, and wide differences in interest rates. Although Ueda's clear signals may help stabilize the yen, market participants cautioned that this will not trigger a sharp rise in the yen. “If Ueda's position is not tough enough, then the yen will continue to weaken against the US dollar and fall below 165.” Mark Dowding, chief investment officer at RBC Bluebay, said, “I think Ueda will open the door to interest rate hikes at the September or October meetings,” but he is unlikely to be hawkish enough, causing the yen to rise sharply.

The yen will face a critical moment of risk this week. Bank of Japan Governor Kazuo Ueda will speak after the central bank policy meeting on Friday. Although the Bank of Japan is generally expected to keep interest rates unchanged, yen traders will keep a close eye on Ueda's speech to prevent any mistakes that could cause the yen to fall further. The yen fell to its weakest level against the US dollar in June since 1986, and continued to weaken this month. The yen continues to be pressured by rising oil prices, concerns about fiscal policy, and wide differences in interest rates. Although Ueda's clear signals may help stabilize the yen, market participants cautioned that this will not trigger a sharp rise in the yen. “If Ueda's position is not tough enough, then the yen will continue to weaken against the US dollar and fall below 165.” Mark Dowding, chief investment officer at RBC Bluebay, said, “I think Ueda will open the door to interest rate hikes at the September or October meetings,” but he is unlikely to be hawkish enough, causing the yen to rise sharply.