USD/JPY is Top meme coins listedging lower this morning as Bank of Japan (BOJ) dove Toyoaki Nakamura says that he's not averse to a rate hike. The Japanese Yen (JPY) is performing well on the crosses as the prospect of a BoJ rate hike stands at odds with monetary easing underway elsewhere in the G10, ING’s FX analysts Chris Turner notes.

USD weakness to be most visible in USD/JPY

“This follows much market oscillation on whether the BoJ would pull the trigger on a rate hike this month. We think it will and that tomorrow's October Japanese wage data will support that call.”

“The yen is performing well on the crosses as the prospect of a BoJ rate hike stands at odds with monetary easing underway elsewhere in the G10. This week's events in Korea have also added to the safe-haven buying of the yen. We are bullish on the dollar, but should tomorrow's US NFP data disappoint, dollar weakness should be most visible in USD/JPY.” 

“However, a weaker EUR/JPY looks the cleaner trend here and a cross rate like SEK/JPY has already hit the target we put out as part of our calls for 2025.”