JPY devaluation persists. Overview for 07.09.2023

September 7, 2023

By RoboForex.com

The Japanese yen, paired with the US dollar, remains weak. The current USDJPY exchange rate stands at 147.52.

From January this year until now, the yen has depreciated by more than 12%.

The US Dollar easily gains ground against the JPY without encountering resistance. When might the yen have a chance for recovery? This depends on the Bank of Japan making a resolute decision to abandon its ultra-soft monetary policy.

On the other hand, it is essential for the US dollar to become less enticing to buyers. For this to occur, the prospects for the US economy must become less attractive from the perspective of bullish investors. Visible signs of a slowdown in the US economy, such as a slight cooling in the job market or the potential for lower interest rates, are not enough to weaken the dollar.

Domestic data in Japan points to a deteriorating situation. Household spending in July declined by 2.7% m/m, contrary to the forecast of 0.7% growth and a previous rise of 0.9%. On an annual basis, the indicator dropped by 5.0%, which is twice as weak as expected.


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Article By RoboForex.com

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Forecasts presented in this section only reflect the author s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

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