The yen gains to around 157.5 against the dollar on 11/5/2026 after BoJ minutes hinted at a December hike, while traders eye US non‑farm payrolls.

On 5 Nov 2026 the Japanese yen strengthened against the U.S. dollar, pulling back to roughly 157.5 after the Bank of Japan’s meeting minutes hinted at a possible rate hike in December. The move came as the dollar was losing ground to the pound, euro, kiwi and Aussie, and was further supported by a pull‑back in U.S. technology stocks.

BoJ minutes signal a shift in policy

The minutes from the October 30 BoJ policy meeting showed a split vote of eight to one in favour of keeping the policy rate at 1.25%, with board member Takata advocating a 1.5% level. The discussion highlighted a growing willingness to tighten, positioning a December hike as a realistic scenario. If the BoJ raises rates by a quarter‑point, the interest‑rate differential with the Federal Reserve—currently around 2.5 percentage points—would narrow slightly, giving the yen a technical boost.

Traders note that the Fed is priced at about a 70% probability of a rate hike on 9 Dec 2026. Cleveland Fed President Hammack, who voted for the October hike, reiterated that policy must become restrictive. Should the Fed hold steady while the BoJ hikes, the yield gap would stay roughly unchanged, reinforcing the yen’s recent rally.

Dollar weakness and risk sentiment

The dollar’s decline was not limited to the yen. It slipped against the pound, euro, New Zealand dollar and Australian dollar as U.S. technology shares fell, reflecting broader risk‑off sentiment. Lower equity prices often reduce demand for the dollar, which is seen as a safe‑haven during market stress, allowing the yen to benefit.

Additionally, U.S. bond yields retreated to two‑month lows, curbing the dollar’s upside. The 10‑year Treasury yield’s dip reduced the incentive for investors to favour dollar‑denominated assets, further supporting the yen’s move back into the 156.00‑159.00 range that has persisted since late September.

Read also: Gold near $4,100 ahead of US NFP data

Key technical levels and upcoming data

USD/JPY is trading just below its 50‑day and 200‑day exponential moving averages, both clustered around 158.00. The pair’s recent high of just under 159.00 on Tuesday now acts as resistance, while the 156.00 level provides support. A break below 156.00 could open the path to earlier lows, whereas a rebound above 158.00 may reignite a short‑term uptrend.

Traders will watch several events: Japan’s September labour cash earnings at 23:30 GMT on 5 Nov (forecast +3.8% YoY), BoJ Governor Ueda’s speech at 16:00 GMT on 6 Nov, and the U.S. non‑farm payrolls report at 13:30 GMT on 6 Nov, expected to add 65 k jobs. The October CPI due on 10 Nov will also shape expectations for the Fed’s 9 Dec meeting.

• USD/JPY 157.5 on 5 Nov 2026
• BoJ minutes suggest December hike
• US NFP forecast +65 k on 6 Nov 2026
• Fed rate hike probability ~70% for 9 Dec 2026

Frequently asked questions

Official data sources

• U.S. Bureau of Labor Statistics
• Bank of Japan
• Federal Reserve (Fed)

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This article is compiled from international market news for information only. It is not investment advice.