Skip to content NZDUSD Fundamental Analysis – 15-October-2024
The Japanese yen surpassed the critical 150 level against the dollar. This movement comes as the dollar strengthens, fueled by expectations that the U.S. Federal Reserve will soon slow down on interest rate cuts.
The USD/JPY 4-hour chart below demonstrates the price, support, and resistance levels.
China’s Fiscal Plan Weakens Yen
Following China’s announcement of a fiscal stimulus plan, the yen weakened alongside the Chinese yuan. The plan did not detail the extent of the financial aid, leading to uncertainty and failing to bolster market confidence.
Bank of Japan Governor Kazuo Ueda’s dovish stance has contributed to the yen’s decline. His cautious approach towards interest rates aligns with signals that there may not be further rate increases soon.
Ishiba Cautious on Rate Hike Amid Data Watch
Newly appointed Prime Minister Shigeru Ishiba has expressed reservations about raising interest rates under the current economic conditions, reinforcing a cautious monetary policy stance.
Market participants are now focusing on upcoming data on Japanese trade and inflation. These figures, anticipated later this week, could provide new insights into Japan’s economic health.
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