Created
: 2025.08.25
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/JPY recovery halts at 147.50 with monetary policy divergence weighing
World FX news
Breaking news
USD/JPY recovery halts at 147.50 with monetary policy divergence weighing
New
2025.08.25 16:38
2025.08.25 16:38
2025.08.25 16:38
- The US Dollar remains depressed near lows, weighed by Fed Powell's dovish turn.
- BoJ's Ueda has hinted at further interest rate hikes, providing additional support to the Yen.
- USD/JPY remains within previous ranges, yet with bearish momentum growing.
,
The US Dollar's recovery attempts from Friday's lows at 146.60 against the Japanese Yen have been capped around the mid-range of the 147.00s on Monday as the pair remains on the defensive amid an unfavourable monetary policy divergence following Fed Powell's dovish comments.
Jerome Powell shocked markets with an unusually dovish tone in front of the world's major central bankers at Jackson Hole, acknowledging the increasing downside risks for the US economy amid a deteriorating labour market.
Powell also said that the theory of a one-off inflationary impact from tariffs seems reasonable, and that the bank will be forced to adjust its monetary policy stance in a clear hint at interest rate cuts.
The BoJ Governor, Kazuho Ueda, on the other hand, struck a more hawkish tone in the same meeting. Ueda observed that the tighter labour market is pushing wages higher, paving the path for further monetary tightening in the coming months.
The Yen jumped about 1.34% against the US Dollar on Friday, posting an impulsive negative candle on the daily chart. Friday's strong reversal suggests the possibility of a deeper correction from late July highs, although the pair should breach supports at 146.25 and 1.4585 to confirm the bearish trend.
USD/JPY Daily Chart
Central banks FAQs
Central Banks have a key mandate which is making sure that there is price stability in a country or region. Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating. Constant rising prices for the same goods means inflation, constant lowered prices for the same goods means deflation. It is the task of the central bank to keep the demand in line by tweaking its policy rate. For the biggest central banks like the US Federal Reserve (Fed), the European Central Bank (ECB) or the Bank of England (BoE), the mandate is to keep inflation close to 2%.
A central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate. On pre-communicated moments, the central bank will issue a statement with its policy rate and provide additional reasoning on why it is either remaining or changing (cutting or hiking) it. Local banks will adjust their savings and lending rates accordingly, which in turn will make it either harder or easier for people to earn on their savings or for companies to take out loans and make investments in their businesses. When the central bank hikes interest rates substantially, this is called monetary tightening. When it is cutting its benchmark rate, it is called monetary easing.
A central bank is often politically independent. Members of the central bank policy board are passing through a series of panels and hearings before being appointed to a policy board seat. Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy. Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called 'doves'. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called 'hawks' and will not rest until inflation is at or just below 2%.
Normally, there is a chairman or president who leads each meeting, needs to create a consensus between the hawks or doves and has his or her final say when it would come down to a vote split to avoid a 50-50 tie on whether the current policy should be adjusted. The chairman will deliver speeches which often can be followed live, where the current monetary stance and outlook is being communicated. A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency. All members of the central bank will channel their stance toward the markets in advance of a policy meeting event. A few days before a policy meeting takes place until the new policy has been communicated, members are forbidden to talk publicly. This is called the blackout period.
Last updated
: 2025.08.25
Related articles
CNY stronger again - Commerzbank
3 minutes agoChina: Increasing policy support for households - Standard Chartered
22 minutes agoFX option expiries for Aug 25 NY cut
37 minutes agoNZD/USD consolidates above 0.5850 on risk appetite, Fed cuts hopes
2025.08.25 17:52EUR/JPY maintains position near 172.50 following German IFO data
2025.08.25 17:24Pound Sterling rises as Fed's Powell surprisingly turns dovish on interest rates
2025.08.25 17:19
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
CNY stronger again - Commerzbank
The Chinese renminbi (CNY) has gained around 0.3% against the US Dollar (USD) since Jerome Powell's speech, Commerzbank's FX analyst Volkmar Baur notes.
New
2025.08.25 18:53Dow Jones points to a moderate correction from Friday's record highs
Dow Jones futures are showing a 0.20% decline a few hours ahead of Monday's opening.
New
2025.08.25 18:52China: Increasing policy support for households - Standard Chartered
China's on-budget fiscal support for consumption in H2 to step up.
New
2025.08.25 18:34Silver price today: Silver falls, according to FXStreet data
Silver prices (XAG/USD) fell on Monday, according to FXStreet data.
New
2025.08.25 18:30FX option expiries for Aug 25 NY cut
FX option expiries for Aug 25 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
2025.08.25 18:19Silver Price Forecast: XAG/USD targets confluence resistance zone around $39.00
Silver price (XAG/USD) edges lower after three days of gains, trading around $38.80 per troy ounce during the European hours on Monday.
New
2025.08.25 17:52NZD/USD consolidates above 0.5850 on risk appetite, Fed cuts hopes
New Zealand Dollar holds a moderately positive tone against the US Dollar on Monday, extending the rebound from Friday's lows sub-1.5800 to the upper range of the 1.5800s.
New
2025.08.25 17:52EUR/JPY maintains position near 172.50 following German IFO data
EUR/JPY extends its gains for the third successive session, trading around 172.40 during the European hours on Monday. The currency cross moves little after the release of German economic data.
New
2025.08.25 17:24Pound Sterling rises as Fed's Powell surprisingly turns dovish on interest rates
The Pound Sterling (GBP) clings to Friday's gains near 1.3530 against the US Dollar (USD) during the European trading session on Monday.
New
2025.08.25 17:19USD/CAD Price Forecast: Faces selling pressure above 200-day EMA
The USD/CAD pair trades cautiously near Friday's low around 1.3820 during the European trading session on Monday.
New
2025.08.25 17:18Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
