The USD/JPY pair has climbed above 150.00 and is continuing to rise.
The Japanese yen is steadily losing ground against the US dollar, with the current USD/JPY exchange rate standing at 150.45.
The USD has now firmly surpassed the psychologically significant level of 150.00. As we’ve discussed previously, this level may have lost some of its importance as the Bank of Japan has shown no signs of readiness for currency interventions.
Today, Shunichi Suzuki, Japan’s Minister of Finance, issued a warning to currency speculators, advising them to avoid making impulsive decisions in the foreign exchange market. He mentioned that the authorities are closely monitoring currency movements, although no direct comments were made regarding the likelihood of intervening in currency trades.
In terms of economic data, general inflation in Japan for September has reached an annual low of 3%, while the Core CPI has slowed down to 2.8%, marking a 13-month low. However, it’s worth noting that the index remains above the Bank of Japan’s target of 2%.
The declining value of the yen can be attributed to the substantial difference between the interest rates set by the Bank of Japan and the US Federal Reserve System.
The post JPY: No Limits to the Decline – October 26, 2023 appeared first at R Blog – RoboForex.