Skip to content USDJPY Hits 3-Month High on US Treasury Yield Surge
On Wednesday, the Japanese yen dropped below 152 against the US dollar, hitting its lowest level almost three months. This yen decrease occurred because the US dollar strengthened, and the interest rates on US government bonds, known as Treasury yields, increased.
These changes were due to positive economic reports from the US and concerns about the country spending more money than it has, known as a budget deficit.
The USD/JPY 4-hour chart below demonstrates the price, support, and resistance levels.
Japan’s Elections Could Shake Political Stability
In Japan, people are focusing on the national elections this weekend. Current predictions suggest that the main ruling party, the Liberal Democratic Party, and its partner, Komeito, might lose their combined government control.
If this happens, it could lead to worries about the stability of Japan’s politics and create uncertainty about the Bank of Japan’s decisions regarding money and interest rates.
Japan Keeps Close Watch on Yen’s Falling Value
Japan’s Deputy Chief Cabinet Secretary Aoki didn’t comment on the recent yen drop. However, Atsushi Mimura, a high-ranking official dealing with currency issues, mentioned last week that the Japanese government is closely monitoring the yen’s performance in the foreign exchange markets.
He stated that the government prefers to keep things stable and doesn’t want the yen’s value to change too rapidly.
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