USD/JPY Continues to Reach 10-Month Highs.
The Japanese yen, in tandem with the US dollar, remains in a weakened state. Currently, the USD/JPY exchange rate is holding at 147.52.
From January of this year to the present, the yen has experienced a devaluation of over 12%.
The US Dollar is steadily advancing against the JPY without encountering much opposition. When might the yen see an opportunity for recovery? This hinges on a determined decision by the Bank of Japan to depart from its ultra-soft monetary policy.
On the flip side, it’s imperative for the US dollar to lose some of its appeal to buyers. To facilitate this, the prospects for the US economy must become less attractive in the eyes of bullish investors. Visible signs of a slowdown in the US economy, like a slight cooling in the job market or the potential for lower interest rates, are insufficient to weaken the dollar.
Domestic data in Japan paints a picture of a deteriorating situation. Household spending in July saw a decline of 2.7% m/m, contrary to the forecast of a 0.7% growth and a previous increase of 0.9%. On an annual basis, the indicator plummeted by 5.0%, which is twice as severe as expected
The post Yen Depreciation Persists – Overview for September 7, 2023 appeared first at R Blog – RoboForex.
