Monetary Policy Divergence:
The Bank of Japan (BOJ) and the U.S. Federal Reserve (Fed) have different monetary policy stances. If the BOJ moves towards tightening (raising interest rates) while the Fed potentially eases (lowering rates), this can strengthen the Japanese yen (JPY) and weaken the USD/JPY pair.
Specifically, increased speculation regarding the BOJ ending its ultra-loose monetary policy and raising rates has put pressure on the USD/JPY pair.
The Bank of Japan (BOJ) and the U.S. Federal Reserve (Fed) have different monetary policy stances. If the BOJ moves towards tightening (raising interest rates) while the Fed potentially eases (lowering rates), this can strengthen the Japanese yen (JPY) and weaken the USD/JPY pair.
Specifically, increased speculation regarding the BOJ ending its ultra-loose monetary policy and raising rates has put pressure on the USD/JPY pair.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.