The USD/JPY pair has resumed its upward trajectory.
The Japanese yen, in conjunction with the US dollar, is facing a weakened position, with the current USD/JPY exchange rate at 148.30.
The yen has retraced to a two-month low against the US currency due to the rally in the US dollar. This rally was sparked by a stronger-than-anticipated employment report in the US for January. As a result, investors are reevaluating their expectations for interest rate cuts in the US, shifting their focus on this matter to May.
Simultaneously, discussions persist in the market about whether the Bank of Japan will opt to move the interest rate into positive territory. Given recent data indicating ongoing economic challenges in Japan, such measures might face postponement.
Industrial activity in Japan remains sluggish, and consumer spending is expanding at an overly slow pace. These conditions could create a more favorable environment for the initiation of fiscal tightening.
The post JPY Experiences Sharp Decline: Overview for February 05, 2024 appeared first at R Blog – RoboForex.