Japanese Yen Rebounds as USD/JPY Trades Above 150; Nikkei Index Gains 27 Points Amid ¥200 Billion BoJ Bond Sales

The Japanese Yen has shown signs of recovery, with the USD/JPY trading just above 150.00 after remaining nearly unchanged on Monday. This rebound is attributed to a cautious trading sentiment and market expectations surrounding the Bank of Japan's (BoJ) upcoming decisions. The Nikkei index has also outperformed, buoyed by gains in the tech sector and positive sentiment from Wall Street's performance. The BoJ has reportedly sold ¥200 billion ($1.3 billion) of futures-linked 10-year government bonds to enhance liquidity, a move aimed at improving trading conditions for these securities. Analysts suggest that BoJ Governor Ueda is likely to maintain current monetary policy unless the USD/JPY rises significantly. The Tokyo stock market has seen a slight increase, closing up by 27 points, supported by robust retail sector performance despite a weaker Yen. Overall, the market is reacting positively to the recent highs in U.S. indices and the easing of interest rate hike expectations from the BoJ.