Category: USDJPY

Fundamental / Economic Backdrop (short term) USDJPY remains primarily driven by monetary policy divergence and year-end liquidity conditions. The US dollar continues to be supported by comparatively higher US yields, while the Japanese yen remains structurally weak due to the Bank of Japan’s gradual and cautious approach to policy normalisation.…

Fundamental / Economic Backdrop (short term) USDJPY remains primarily driven by the interest rate differential between the United States and Japan. US yields continue to hold at elevated levels, supported by resilient US economic data and a cautious Federal Reserve stance regarding the pace of future rate cuts. This maintains underlying USD suppor…

Fundamental / Economic Backdrop (short term) Short-term fundamentals continue to be dominated by the US–Japan monetary policy divergence. US yields remain elevated, supported by resilient US data and a Federal Reserve stance that remains cautious on easing. In contrast, the Bank of Japan continues to signal gradual normalisation, but without urg…

Fundamental / Economic Backdrop (short term) Short-term USDJPY price action continues to be driven by the interest rate differential between the US and Japan, risk sentiment, and expectations around central bank policy normalisation.The US dollar remains broadly supported by comparatively higher yields, though momentum has moderated …

Fundamental / Economic Backdrop (short term) The short-term macro environment remains USD-supportive but increasingly balanced. US monetary policy expectations continue to anchor around a “higher for longer” stance, with recent data reinforcing resilience in consumption and labour markets. However, marginal signs of cooling inflation and growi…

Fundamental / Economic Backdrop (short term) USDJPY at 155.79 continues to trade within a broader yen-weakness environment, shaped primarily by monetary policy divergence. The Bank of Japan remains accommodative, with market expectations centred on only modest tightening steps, keeping Japanese yields compressed relative to US Treasuries. In contr…

Fundamental / Economic Backdrop (short term) USDJPY at 155.46 trades in an environment shaped by diverging monetary policies and shifting risk sentiment. The United States continues to show moderating inflation alongside stable labour-market conditions. Markets expect the Federal Reserve to maintain a cautious stance, keeping rates elevated for l…

Fundamental / Economic Backdrop (short term) Key macroeconomic factors currently influencing USD/JPY: Federal Reserve policy expectations: Markets continue to price in a gradual easing bias for 2026, but near-term US yield levels remain elevated. This supports the US dollar structurally, but limits aggressive upside unless fresh inflation…

Fundamental / Economic Backdrop (short term) USD dynamics: The US dollar remains sensitive to evolving expectations around Federal Reserve policy into year-end. Markets remain highly reactive to US inflation data, labour-market prints, and Treasury yield movements. Any repricing of rate-cut timing continues to drive near-term volatility in U…

Fundamental / Economic Backdrop (short term) Recent macroeconomic and market influences affecting USD/JPY: The U.S. dollar (USD) remains influenced by expectations around the Federal Reserve (Fed)’s monetary-policy path; if markets believe rate cuts or stable/low yields are forthcoming, that tends to weaken USD and pressures USD/JPY. …