USDJPY Fundamental Analysis – 14-October-2024

On Monday, the Japanese yen fell below 149 against the dollar, nearing its weakest point since early August. This drop came as the dollar grew stronger, fueled by widespread beliefs that the U.S. Federal Reserve might avoid large-scale interest rate cuts in this year’s upcoming sessions.

China’s Fiscal Plan Lacks Impact

Additionally, the yen’s decline mirrored a fall in the Chinese yuan after China revealed a fiscal stimulus plan over the weekend. This plan did not boost investor confidence as the total funds involved were unclear.

Japan’s Economic Strategy

In Japan, despite Prime Minister Shigeru Ishiba’s earlier remarks hinting that the current economic situation doesn’t justify further rate increases, other senior officials later softened his statements. Chief Cabinet Secretary Yoshimasa Hayashi clarified that Ishiba did not specifically ask Bank of Japan Governor Kazuo Ueda for any changes during their discussion.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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