Japanese Yen drops to over one-week low against USD; downside seems limited
The post Japanese Yen drops to over one-week low against USD; downside seems limited appeared on BitcoinEthereumNews.com. The Japanese Yen attracts some intraday sellers on Wednesday, though it lacks follow-through. Reports that Japan will take action to curb a rise in JGBs undermine the JPY amid the risk-on mood. A modest USD uptick supports USD/JPY, though the divergent BoJ-Fed outlook might cap gains. The Japanese Yen (JPY) slides to a one-week low against its American counterpart during the Asian session on Wednesday, though the intraday downtick lacks follow-through. Comments from Japan’s Finance Minister Katsunobu Katō suggested that the government will take some action to curb the recent sharp rise in Japanese Government Bond (JGB) yields. This, along with a generally positive risk tone, undermines the safe-haven JPY and acts as a tailwind for the USD/JPY pair amid some follow-through US Dollar (USD) buying for the second straight day. The JPY bears, however, refrain from placing aggressive bets amid bets that the Bank of Japan (BoJ) will raise interest rates again. This marks a big divergence in comparison to expectations that the Federal Reserve (Fed) will lower borrowing costs further in 2025, which should limit losses for the lower-yielding JPY. Moreover, the uncertainty over US President Donald Trump’s tariff policies and geopolitical risks should underpin the safe-haven JPY. Apart from this, the underlying USD bearish sentiment might cap further gains for the USD/JPY pair. Japanese Yen traders seem non-committed amid a combination of diverging forces Japan’s Finance Minister Shunichi Kato said this Wednesday that the government is concerned about the recent spike in yields and will closely monitor bond market situations. This comes after Reuters reported on Tuesday that Japan’s Ministry of Finance will consider tweaking the composition of its bond program for the current fiscal year, which could involve cuts to its super-long bond issuance. Meanwhile, Bank of Japan Governor Kazuo Ueda said that the outlook remains…
The post Japanese Yen drops to over one-week low against USD; downside seems limited appeared on BitcoinEthereumNews.com.
The Japanese Yen attracts some intraday sellers on Wednesday, though it lacks follow-through. Reports that Japan will take action to curb a rise in JGBs undermine the JPY amid the risk-on mood. A modest USD uptick supports USD/JPY, though the divergent BoJ-Fed outlook might cap gains. The Japanese Yen (JPY) slides to a one-week low against its American counterpart during the Asian session on Wednesday, though the intraday downtick lacks follow-through. Comments from Japan’s Finance Minister Katsunobu Katō suggested that the government will take some action to curb the recent sharp rise in Japanese Government Bond (JGB) yields. This, along with a generally positive risk tone, undermines the safe-haven JPY and acts as a tailwind for the USD/JPY pair amid some follow-through US Dollar (USD) buying for the second straight day. The JPY bears, however, refrain from placing aggressive bets amid bets that the Bank of Japan (BoJ) will raise interest rates again. This marks a big divergence in comparison to expectations that the Federal Reserve (Fed) will lower borrowing costs further in 2025, which should limit losses for the lower-yielding JPY. Moreover, the uncertainty over US President Donald Trump’s tariff policies and geopolitical risks should underpin the safe-haven JPY. Apart from this, the underlying USD bearish sentiment might cap further gains for the USD/JPY pair. Japanese Yen traders seem non-committed amid a combination of diverging forces Japan’s Finance Minister Shunichi Kato said this Wednesday that the government is concerned about the recent spike in yields and will closely monitor bond market situations. This comes after Reuters reported on Tuesday that Japan’s Ministry of Finance will consider tweaking the composition of its bond program for the current fiscal year, which could involve cuts to its super-long bond issuance. Meanwhile, Bank of Japan Governor Kazuo Ueda said that the outlook remains…
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