The Yen continued its bearish trend against the Dollar on Monday. Commerzbank economists analyze the prospects for the Yen.
A weaker JPY seems fundamentally justified
If the Yen continued to depreciate, it is very possible that further interventions would occur. However, they are unlikely to have much effect. Given that the BoJ does not want to move away from its ultra-loose monetary policy despite comparatively high inflation rates, a weaker Yen seems fundamentally justified.
A weaker dollar would improve the situation, but currently the market seems to be betting on a stronger dollar. The strength of the US economy and the hawkish comments from Fed members support the USD at the moment. All in all, there are many things pointing towards higher levels in USD/JPY.
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.
