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Forex Focus — Sep 4, 2026, 09:00 UTC
The US Dollar / Japanese Yen pair plunged 1.93% today, a dramatic 301-pip move. This broad dollar weakness pressured the DXY index. Shifting central bank expectations drove the selling. EUR/USD gained 31 pips, rising 0.31% to 1.1619. Dollar selling was the primary catalyst for the euro's advance.
Key takeaways
- The US Dollar / Japanese Yen pair plunged 1.93% today, a dramatic 301-pip move.
- EUR/USD gained 31 pips, rising 0.31% to 1.1619.
- A 25-basis-point September hike looks reasonable.
Transcript
The US Dollar / Japanese Yen pair plunged 1.93% today, a dramatic 301-pip move. This broad dollar weakness pressured the DXY index. Shifting central bank expectations drove the selling. EUR/USD gained 31 pips, rising 0.31% to 1.1619. Dollar selling was the primary catalyst for the euro's advance. Nomura analysts now predict further Bank of Japan rate hikes. A 25-basis-point September hike looks reasonable. This hawkish BOJ outlook fuels yen strength. It also triggers significant unwinding of long-standing carry trades. The Federal Reserve and ECB held steady this week. Their cautious stances offer no immediate policy shifts. For tomorrow, watch EUR/USD support at 1.1600. Resistance sits near 1.1650. USD/JPY faces strong resistance at 156.50. Support for the pair is around 155.50. Stay sharp for further volatility. This is Forex Focus on rawfin.tv.
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