Skip to content USDJPY Hits 3-Month High as BOJ Decision Looms
The Japanese yen continued its downward trend, stabilizing at about 153.4 against the dollar on Wednesday. This marks a three-month low as market participants anticipate the Bank of Japan’s upcoming monetary policy announcement.
It is generally expected that the central bank will not change interest rates this Thursday, but investors are keen to detect any signs of a possible rate increase before the end of the year. This cautious sentiment is due to recent reports showing disappointing export figures and no growth in household spending.
The USD/JPY 4-hour price chart below demonstrates the price, support, and resistance levels.
Ruling Party’s Loss Signals Steady Monetary Policy Ahead
Moreover, following the ruling party’s loss of its majority in parliament, changes in monetary policy are unlikely. The leader of the opposition Democratic Party of the People has advised against major policy adjustments, noting that wages have not seen real growth.
Amidst the yen’s continued weakness, Finance Minister Kato has asserted that the government remains alert to fluctuations in foreign exchange rates. There are growing concerns that if the yen falls closer to 160 per dollar, it could prompt another intervention in the currency market.
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