Japanese Yen Surges on Wage Data

The Japanese yen strengthened past 154 per dollar on Wednesday, its highest in seven weeks, as strong wage and services data fueled expectations of a more aggressive Bank of Japan policy. Japan’s real wages rose for a second month in December, with nominal wage growth hitting a nearly 30-year high due to winter bonuses. The January services PMI was revised up to 53 from 52.7.

In January, the Bank of Japan raised interest rates and signaled openness to further hikes if economic and inflation trends align. Externally, the yen gained as the US dollar weakened after Washington delayed tariffs on Mexico and Canada, while trade tensions with China eased.

Key resistance stands at 155.90, with potential targets at 158.70 and 160.00. Support is at 153.00, followed by 151.90 and 149.20.