USDJPY updated its 24-year highs and may continue rising.
The Japanese Yen hit a new 24-year low against the USD. The current quote for the instrument is 136.25.
The high in USDJPY is now at 136.71, and it seems like the sky is the limit.
The reasons for the Yen depreciation are the same. First, it’s the difference in the monetary policies and strategies of global central banks. The Bank of Japan, perhaps, remains the only regulator among developed economies with the “soft” monetary approach, while the others already started to tighten their stance a while ago.
Secondly, it is quite possible that Japan is okay with the decline of its national currency. It supports exporters and helps to replenish the government budget.
On top of it, rising inflation puts pressure on the JPY rate, which is quite logical.
There was a verbal intervention from the Japanese regulator in June, which market players didn’t find impressive. No one believes that the BoJ will “burn” its money just for fun, so there is no point in reacting to that.
As a result, the Yen has all reasons to continue devaluating. Well, in the mid-term at least.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.