Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Can the Japanese Yen Stage a Recovery Against the US Dollar?

USDJPY has been soaring recently, with the greenback at 24-year highs against the Japanese currency.

Friday saw a small retracement in the pair and the Yen will look to Tuesday’s CPI report for the US economy to add further gains.usdjpy chart

USDJPY-Daily Chart

The inflation rate for the US economy is expected to slip to 8.0% from 8.5%, and that could lead to traders selling off the greenback on peak inflation hopes. That could slow the trajectory of Federal Reserve interest rate hikes and could take some of the recent steam out of the US dollar.

Another potential mover for the Yen could be statements from Japanese officials hinting at currency intervention. The latest comments came from Seiji Kihara, deputy chief cabinet secretary of Prime Minister Fumio Kishida's government.

Kihara also remarked that the government would consider "in the not-so-distant future" relaxing strict border controls to open Japan's borders to overseas visitors.

"As for excessive, one-sided currency moves, we will closely watch developments and must take steps as needed," Kihara said when asked about the Yen’s recent moves.

"I won't comment on monetary and interest-rate policy, as they fall under the jurisdiction of the BOJ," he added.

The government is looking to scrap a cap on visitor numbers to Japan by October, according to the Nikkei newspaper. A weak yen is most effective in attracting inbound tourism, Kihara said, before adding that more must be done to attract tourists.

The Yen has been hammered by the BOJ’s support for the weak economy with ultra-low interest rates. The Federal Reserve has been aggressive in raising rates and that interest rate differential is a key factor in the Yen’s decline.

According to MOF sources speaking to Yahoo Finance, the BOJ still has no plans to raise interest rates or alter its dovish policy guidance to support the yen.

Last Updated: 13/09/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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