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by On Tuesday, the Japanese yen traded around $140.3 (USD/JPY), close to its highest level in 13 months. This movement comes as investors prepare for key monetary policy decisions from Japan and the US this week.
USDJPY Technical Analysis – 17-September-2024
Bank of Japan’s Expected Moves
The Bank of Japan (BOJ) is expected to keep interest rates the same on Friday. However, they might hint at future rate hikes. Markets believe the BOJ will raise rates again in December, though an October hike is still possible.
Anticipation of US Rate Cut
Meanwhile, on Wednesday, the US Federal Reserve will announce its first rate cut in four years. Many believe there’s a two-thirds chance of a significant 0.50% cut.
Impact of Currency Fluctuations
Japan’s Finance Minister, Shunichi Suzuki, mentioned on Tuesday that changes in foreign exchange rates have good and bad effects on the economy. He emphasized that rapid changes are not desirable.
Conclusion
In summary, the Japanese yen is strong as investors await important policy decisions from Japan and the US. The BOJ will likely keep rates steady but may signal future hikes.
The US Federal Reserve is expected to cut rates, which could impact global markets. Currency fluctuations have mixed economic effects, and sudden changes are not preferred.
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