EUR/USD is testing key support levels while USD/JPY approaches a 40-year high.

Japan's core CPI growth outlook for fiscal year 2026 may be downgraded from 2.8% year-over-year according to a Nikkei report.

Bank of Japan to keep key rate unchanged at next week's policy meeting.

Bank of Japan to maintain its key policy rate at its next week's meeting.

BoJ Yen Index falls to 71.42 from 71.63.

Yen carry trade unwinding is slowing due to the 30-year history of the strategy and algorithmic trading dynamics limiting narrative-driven market reactions.

Japan's 40-year government bond yield rose 10 basis points on inflation concerns.

Japan's 5-year bond yield climbed to 2.040%, matching a record high.

US jobless claims dropped to 187,000 last week, the lowest level in over 50 years since September 1969.

Japanese bond investors are primed to react to any changes at the Government Pension Investment Fund as the country shifts to expansionary fiscal policy.

Japan's holdings of U.S. Treasuries fell by $96 billion over the past three months to $1.14 trillion, the lowest level since April 2025, highlighting reduced overseas demand for U.S. government debt.

Japan advances deep-sea rare earth mining with a Pacific drilling test, marking a step toward reducing reliance on China's rare earth supply chain.

US indices close mixed on July 24; Dow up 0.45%, S&P up 0.05%, Nasdaq down 0.64%; crude oil settles at $89.31; Trump: Iran not ready to make a deal; US new-home sales 0.628M vs 0.610M estimate; July Flash S&P Global Manufacturing 53.8 vs 54.3 estimate; Canada June PPI -1.4% vs -0.4% expected; Canada new housing price index June -0.1% vs -0.3% last month.

Fed meeting scheduled for Wednesday; BoJ follows. USD/DXY showing bullish signals on multiple timeframes with bull flag breakout; USD/JPY approaching 165 level; EUR/USD declining after dovish ECB response.

Bahrain and Kuwait warplanes struck Iran in a rare Gulf military retaliation.

Central banks' interest rate expectations shifted this week, with RBNZ pricing 57 bps of hikes by year-end (71% probability of rate hike at next meeting), Fed 42 bps (64% probability of no change), ECB 41 bps (70% probability of rate hike), BoE 37 bps (92% probability of no change), RBA 28 bps (61% probability of no change), BoJ 25 bps (97% probability of no change), BoC 20 bps (93% probability of no change), and SNB 15 bps (84% probability of no change).

US Secretary of State Rubio pledges to assist Japan with oil supply.

The Wall Street Journal reports on two developing topics: speculation about potential Federal Reserve rate hikes and a new tariff announcement.

Asian currencies weaken as Trump tariffs revive inflation concerns and strengthen the US dollar.