JPY Strengthens: Overview for December 04, 2023

USD/JPY analysis today

The USD/JPY pair has descended to the lows last seen on September 9.

The Japanese yen is showing considerable strength against the US dollar, with the current USD/JPY exchange rate at 146.83.

The yen’s swift and robust performance has caught many off guard.

Despite a mixed fundamental outlook for the Japanese national currency with no clear positive factors, the Bank of Japan Policy Board delivered a clear message over the weekend: the regulator has not achieved an inflation growth rate justifiable by a rise in wages.

It’s likely that the Bank of Japan will persist with its ultra-soft monetary policy in the foreseeable future, keeping the interest rate at a negative -0.10% per annum.

While the Japanese economy is displaying a mild recovery from a weak Q3, economic growth might remain restrained as the year concludes.

Expect minimal changes in the credit and monetary policy structure until spring.

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