USD/YEN Update 18 December 2025
Set up for Friday
Price is coming to the chart instead of chart coming to the price, which is exactly the way it should be. The impulse higher was helped by pressure off USD as a whole, but very encouraging for a big move higher next year.
A break of 156.95 would yield 158.00 very quickly and force BoJ/MoF to decide between saving the bond market or supporting the currency. They always choose to let the currency slide.
Friday’s BoJ decision to hike short rates 25bps (market telling them to so they will) just sets up further yield climbing and YEN weakening post the hike.