464 days ago
This morning, we had news that the Bank of Japan is not considering yet changing the yield-curve control policy. Japanese stock rose, and the yen tumbled 2% but it is seeing some recovery. We will be watching the USDJPY for a reversal in the trend. the support levels displayed in the chart are key levels to watch for.
470 days ago
The Japanese yen strengthened against major peers after news that the BOJ is set to direct efforts toward reducing the negative impacts of the bank's ultra-accommodative policy. In December, the BoJ modified its yield curve control policy, allowing the 10y bond yield to increase from 0.25% to 0.50%. More weakness could be ahead, in particular, if inflation misses estimates.
598 days ago
The Japanese yen (JPY) made a new low against the dollar this morning, after the momentum of a rising dollar continued based on the large differentials between the interest rates of the Bank of Japan and the US. Investors are ditching the yen to invest in dollars, where Treasury yields can provide a return. Adding to the yen's weakness, Japan reported disappointing household spending and wage data, which remains well short (too weak) of what is required for the Bank of Japan to consider moving away from its ultra-loose monetary policy.
654 days ago
Japanese Prime Minister Kishida's strong election win gives him and his party a three-year time frame to act on his agenda to make capitalism fairer, greener, and maintain the same course on economic policy including central bank stimulus. With no signs of the Bank of Japan changing course, the yen is weakening further against the dollar, pushing past a 24-year low. It is difficult to say how low could the yen go against the dollar, but with such a wide difference in central bank policies, the downtrend could continue.
