The Japanese Yen is trading lower against the US Dollar as political uncertainty and global risk-taking weigh on the currency. On Monday, the Yen weakened, with the USD/JPY rate rising to 151.87—showing a steady downtrend of about 3% over the past month. Market watchers note that political turmoil in Japan, especially after the Komeito party ended its partnership with the ruling LDP, adds pressure as investors worry about future leadership and policies.
At the same time, President Donald Trump’s changes in China tariffs and softer comments over the weekend have shifted global investors toward riskier assets, reducing safe-haven demand for the Yen. The Bank of Japan (BoJ) and the US Federal Reserve also remain on divergent paths: the BoJ is seen possibly raising rates later this year, while the Fed is widely expected to cut rates. This difference limits the momentum for further USD/JPY gains but keeps support under the Dollar.
Liquidity in both Japan and the US forex trading is thin due to recent holidays, and the US government shutdown continues to foster uncertainty. Some traders are still cautious, expecting the Japanese authorities might intervene if the Yen falls further. For now, technical traders believe further USD/JPY appreciation depends on a decisive break above 152.00, but support remains around 151.15. Deeper declines could see the pair dip toward 150.00.
In summary, the Yen stays depressed amid Japan’s domestic political issues and a global risk-on mood, while the US Dollar remains strong due to safe-haven flows and monetary policy expectations.
