The JPY Weekly Update for December 8, 2025, is here, and it's a rollercoaster ride for the USD/JPY pair!
Let's dive right in. The week began with the USD/JPY at 155.90. But here's where it gets interesting: on December 1st, the pair took a dive above 154.50 during overseas trading. Why? Market participants interpreted the BOJ Governor Kazuo Ueda's speech and press conference as a strong hint towards an upcoming rate hike. However, the pair quickly bounced back, reaching a weekly high of 156.18 by December 2nd, thanks to a sharp rise in US yields.
The dollar's strength didn't last long. Media reports suggesting that Kevin Hassett, Director of the National Economic Council (NEC), might be the next Fed chair, sent the dollar tumbling. Expectations of rate cuts reinforced this downward trend, pushing the USD/JPY down to around 155.00 by December 3rd.
On December 4th, the USD/JPY initially recovered to around 155.50, but just before overseas investors joined the market, a report about the Takaichi administration's acceptance of a BOJ rate hike sent the pair crashing below 155 again. The pair hit a weekly low of 154.51, but buying interest soon emerged, pushing the USD/JPY back towards 155.
The week's USD/JPY movement was influenced by various factors, including BOJ Governor Ueda's remarks, expectations of Fed rate cuts, and media reports on potential Fed chair nominees.
G10 currencies strengthened against the dollar this week, with the Australian dollar leading the pack after markets adjusted their expectations for rate cuts. The yen also outperformed, thanks to Governor Ueda's comments.
And this is the part most people miss: the USD/JPY was trading below 155.50 at the time of writing on December 5th (Figure 1).
So, what's your take on this week's market movements? Do you think the USD/JPY will continue its downward trend, or is a rebound on the cards? Share your thoughts in the comments below!
Figures 1 and 2 provide a visual representation of the USD/JPY's movement and the rate of change for major currencies against the USD this week. For a more detailed analysis, download the full PDF report attached at the top of this page.
