The Yen’s in trouble as it just keeps sliding, now hovering near a nine-month low against the Dollar. Traders aren’t buying the idea that the Bank of Japan will raise rates anytime soon. BoJ Governor Kazuo Ueda keeps talking about inflation inching toward 2%, but nobody believes a hike’s actually coming. To make matters worse for the Yen, Japan’s new Prime Minister, Sanae Takaichi, is pushing for more stimulus and closer coordination with the central bank—exactly what Yen bulls don’t want to hear.
Moreover, the US government’s funding deal has made the global market more positive towards the Dollar. Because of this, markets are seeing traders exit safe-haven currencies like the Yen and trust the USD. However, Satsuki Katayama, Japan’s Finance Minister, intervened, warning about erratic currency movements and hinting at potential intervention if things got out of control. For the time being at least, that was sufficient to halt the Yen’s decline.
Dollar Hits Resistance as Fed Dovishness Grows
The Dollar’s hanging in there, mostly because sentiment is risk-on, but talk of Fed rate cuts is stopping any big rally. Traders now see about a 60% chance of a December cut. Weak US jobs data and soft consumer confidence only add fuel to that view. The government shutdown drama didn’t help, raising fresh doubts about US growth and keeping the USD/JPY pair in check.
USD/JPY: Stuck Below 155.00
The charts tell the story. Every time USD/JPY pushes up to 155.00, it falls. There’s still some bullish energy, but unless the pair can break through that level, it’s going nowhere. If it does break out, 155.60 or even 156.00 are the next big targets. Drop back toward 154.00, and you’ll probably see buyers step in.
Bottom line: The Yen’s stuck in a rough spot. With Japan’s leaders sticking to easy money and no clear signal from the BoJ, there’s just not much to support the currency. Unless the central bank changes its tune, expect the Yen to keep struggling near these lows while the market waits for a real catalyst.
