The Japanese Yen (JPY) is the largest winner in this last sales round of USD, since it responds both to the fall of shares and to the risks on the independence of the Fed. The USD/JPY has fallen below the 140.0 brand and, given the wide attraction of the Yen as a safe refuge substitute, we do not see the conditions for an immediate reversion of the movement, the FX analyst indicates. Pesole
The USD/JPY can point to the 135.0 mark
“If perhaps, the Yen will benefit a little more than the euro of USD’s exits, thanks to a stronger domestic image. Even if it has been reported that the Bank of Japan should keep the rates without changes on May 1 and cut the inflation forecasts with a stronger yen, the data should still argue that the gradual hardening guide must remain in place.”
“Tokyo CPI figures are expected to show a great jump on Friday. By the way, it has been reported that the ruling party of Japan is planning an emergency proposal for domestic support to counteract the impact of tariffs.”
“Finally – and quite important – Japan has moved before most other countries to negotiate with the USA a commercial agreement. The Minister of Finance, Katsunobu Kato, will meet with Scott Besent this week and said that the currencies will be a key aspect of the discussion. If the Trump administration includes the strengthening of the JPY as a condition for a commercial agreement, we could easily see the USD/JPy the 135.0 mark. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
