The USD/JPY pair persists in its upward momentum, achieving new peaks.
The Japanese yen, when paired with the US dollar, continues its path of devaluation. The current exchange rate for USD/JPY stands at 149.03.
A recent meeting between politicians and Bank of Japan representatives concluded with somewhat ambiguous statements. The regulator’s head, Kazuo Ueda, highlighted the significance of vigilantly monitoring positive shifts in the economic landscape. On the other hand, council members from the private sector stressed the need for implementing an adaptable fiscal policy. The private sector believes it is opportune for the Bank of Japan to evaluate the potential impact of future interest rate hikes on the economy.
Despite these discussions, no substantive decisions were reached at this point. As previously noted, market expectations regarding intervention by the Bank of Japan appear to be inflated. If the regulator had intentions to intervene in trading dynamics, action would likely have been taken by now.
The psychological threshold of 150.00 yen per dollar holds immense importance for both Japan’s economy and investors. A breach of this level could trigger a new wave of JPY selling.
The post The Yen Continues Its Descent: Overview for September 27, 2023 appeared first at R Blog – RoboForex.