{"id":15251,"date":"2024-10-04T10:20:26","date_gmt":"2024-10-04T10:20:26","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15251"},"modified":"2024-10-04T10:20:26","modified_gmt":"2024-10-04T10:20:26","slug":"yen-weakens-as-policymakers-delay-rate-hikes","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/yen-weakens-as-policymakers-delay-rate-hikes\/","title":{"rendered":"Yen Weakens as Policymakers Delay Rate Hikes"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Yen stabilises at 146.48 per dollar, losing over 3% of its value against the U.S. dollar this week.<\/li>\n\n\n\n<li>New Japanese government officials suggest further rate hikes may be premature, while strong U.S. data supports a robust dollar.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">The Japanese yen (Symbol: USDJPY) trades around <strong>146.48<\/strong> against the U.S. dollar on Friday, following a sharp decline earlier in the week. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The loss of strength comes as top Japanese officials, including newly appointed Prime Minister <a href=\"https:\/\/www.scmp.com\/news\/asia\/east-asia\/article\/3280449\/japans-ishiba-picks-continuity-cabinet-eyes-snap-election\" title=\"\"><strong>Shigeru Ishiba<\/strong><\/a>, signalled that the country is not ready for further interest rate hikes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ishiba\u2019s comments, alongside remarks from his economy minister, Ryosei Akazawa, urging the central bank to remain cautious, have tempered expectations of imminent policy tightening.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Kato to Focus on Relief<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Finance minister <a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/new-japan-pm-appoints-abenomics-proponent-finance-minister-2024-10-01\/\" title=\"\"><strong>Katsunobu Kato<\/strong><\/a> has been tasked with implementing measures aimed at price relief, economic growth, and support for low-income households, all of which point to a focus on economic stability rather than rate hikes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Externally, the Japanese yen faces continuous pressure from a strengthening U.S. dollar. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/WhatsApp-Image-2024-10-04-at-18.04.19-1024x450.jpeg\" alt=\"\" class=\"wp-image-15254\" style=\"width:1083px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: USD\/JPY consolidates near 146.48, with resistance at 147.24, as observed on the<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\"> VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From the chart above, we can see that the USDJPY is consolidating around <strong>146.481<\/strong>, recovering from a low of <strong>145.916<\/strong>, with resistance at <strong>147.241<\/strong>. The MACD is neutral, showing no strong trend at the moment. Key events to watch include the upcoming U.S. <strong>Non-Farm Payrolls<\/strong> report and the Bank of Japan\u2019s dovish stance, both of which will influence USDJPY\u2019s next move.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related content: <a href=\"https:\/\/www.vtmarkets.com\/blog\/education\/interest-rate-tug-of-war-for-central-banks-hawkish-vs-dovish\/\">Interest Rate Tug of War for Central Banks<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Strong U.S. economic data this week has reinforced the view that the Federal Reserve may not need to cut rates aggressively, fueling the upwards momentum for the U.S. dollar index (Symbol: USDX).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The combination of domestic caution and external dollar strength has driven the <a href=\"https:\/\/www.vtmarkets.com\/beginners\/lesson-3-understanding-the-currency-pairs\/\"><strong>USDJPY currency pair<\/strong><\/a> to its current position, with little expectation of a rapid recovery unless there is a shift in the monetary stance of either country.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Asian currencies are set for their worst week in more than a year as traders pare bets on aggressive Fed rate cuts <a href=\"https:\/\/t.co\/74KRfrRcTz\">https:\/\/t.co\/74KRfrRcTz<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1842057614617665783?ref_src=twsrc%5Etfw\">October 4, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>What is Next for the Japanese Yen<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Looking ahead, markets are likely to stay cautious on the yen, with its trajectory depending on the Japanese internal economic conditions and any shifts in the U.S. monetary policy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While short-term declines may continue, major support could emerge if policymakers of Japan show signs of a pivot, or if the Federal Reserve unexpectedly changes its stance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and<\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\"> start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japanese yen stabilises but faces pressure from cautious domestic policy and a stronger U.S. dollar. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,12,30],"class_list":["post-15251","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-forex","tag-yen"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15251"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15251\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}