{"id":29991,"date":"2026-03-05T20:01:20","date_gmt":"2026-03-05T20:01:20","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/29991\/"},"modified":"2026-03-05T20:01:20","modified_gmt":"2026-03-05T20:01:20","slug":"despite-energy-price-shocks-the-yen-stays-firm-as-boj-rate-rise-expectations-persist-possibly-by-april","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/29991\/","title":{"rendered":"Despite energy price shocks, the yen stays firm as BoJ rate-rise expectations persist, possibly by April"},"content":{"rendered":"The Japanese yen has stayed fairly steady despite an energy price shock linked to the Middle East conflict. The yen has been supported by expectations that the Bank of Japan (BoJ) will keep moving towards higher interest rates.\n\nA Bloomberg report said BoJ officials are still on track to raise rates, and an April hike has not been ruled out. The report also said officials have not changed their position of lifting rates if the economic outlook develops as expected.\n\n

Yen Outlook And Policy Path<\/h3>\nIf crude oil prices stay high due to prolonged tensions in the Middle East, inflation expectations could rise. This could add to price pressures in Japan.\n\nHigher energy prices can worsen Japan\u2019s terms of trade, which can weigh on the yen. A longer conflict and higher oil prices could also lead the BoJ to move more cautiously on further rate rises, which could lead to a weaker yen.\n\nThe article states it was produced with the help of an Artificial Intelligence tool and checked by an editor.\n\nThe Japanese Yen remains at a pivotal point, caught between two opposing forces. We see a clear tension between the Bank of Japan\u2019s path toward higher interest rates and the economic strain from elevated energy costs. This dynamic is creating significant opportunities for traders positioned for a decisive move in the coming weeks.\n\n

Derivatives Positioning Scenarios<\/h3>\nLooking back to the situation in 2025, the main question was whether the BoJ would begin raising rates in the face of an energy shock. The bank did ultimately move forward, ending its negative interest rate policy in a historic shift. That initial step has paved the way for the current market, which is now anticipating the next phase of policy normalization.\n\nRecent data shows Japan’s core inflation has remained above the BoJ’s 2% target for over a year, with the latest reading at 2.6%. Meanwhile, crude oil prices have settled into a higher range, with Brent crude consistently trading above $90 a barrel, impacting Japan\u2019s import-dependent economy. This is why the USD\/JPY exchange rate has been consolidating around the 145 level, awaiting a fresh catalyst.\n\nFor derivative traders, this suggests positioning for a potential breakout ahead of the BoJ’s April meeting. Buying JPY call options offers a defined-risk way to capitalize on a surprisingly hawkish BoJ statement that could send the Yen strengthening. Such a move would likely push USD\/JPY toward the low 140s.\n\nOn the other hand, if the BoJ hints that high energy prices will force a pause in its rate hike cycle, the Yen could weaken sharply. In this scenario, purchasing JPY put options or USD\/JPY call options would be the appropriate strategy. The key will be the central bank’s updated economic outlook and whether it prioritizes fighting inflation or supporting growth.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

Japan\u2019s yen holds steady after energy shock, backed by expectations the Bank of Japan will raise rates.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-29991","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=29991"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29991\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=29991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=29991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=29991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}