Japanese Yen ($USD/JPY) Forex Forecast: Down 2.0% Today

What is Japanese Yen?

The USD/JPY currency pair represents the exchange rate between the US dollar and the Japanese yen. Today, the pair experienced a strong bearish movement.

Why is Japanese Yen going down?

USD/JPY forex is down 2.0% on Jul 12, 2024 0:05

• The USD/JPY pair faced a bearish movement as the Japanese yen continued to weaken due to significant interest rate differentials between the Bank of Japan and the Federal Reserve.
• Traders rushed for safe-haven assets like gold, real estate, treasuries, and the yen, anticipating a potential rate cut in September following positive inflation data in the US.
• The record highs in the Japanese markets, with the Nikkei average surpassing 42,000 points for the first time, could have also contributed to the yen's decline as investors may have shifted focus towards Japanese equities.
• The overall cautious market sentiment ahead of the US consumer price index release and the slight recovery of the dollar from a three-week low might have added pressure on the USD/JPY pair, leading to its bearish movement.

USD/JPY Price Chart

USD/JPY News

Inflation Data Sparks Rush For Gold, Real Estate, Treasuries, Yen: Traders See September Rate Cut As Done Deal - Invesco CurrencyShares Japanese Yen Trust ( ARCA:FXY ) , SPDR Gold Trust ( ARCA:GLD )

The stars seem to be aligned for a reduction in U.S. interest rates in about two months, as the June inflation report released Thursday may provide policymakers with the confidence that annual consumer price changes are finally trending toward the Fed's 2% target.

https://www.benzinga.com/markets/asia/24/07/39733667/inflation-data-sparks-rush-for-gold-real-estate-treasuries-yen-traders-see-september-rate-cut-as-don

Japanese Yen Faces Continued Decline Amid Interest Rate Differentials

The USD/JPY pair has risen to 161.65, with the market cautious ahead of today's US consumer price index release. Despite this, the yen remains weakened by the significant interest rate differential between the Bank of Japan ( BoJ ) and the Federal Reserve.

https://www.benzinga.com/trading-ideas/24/07/39730336/japanese-yen-faces-continued-decline-amid-interest-rate-differentials

Japanese Markets Reach Record Highs

The Nikkei average jumped 0.94 percent to 42,224.02, breaking past 42,000 points for the first time ever. The broader Topix index settled 0.69 percent higher at 2,929.17.

https://www.business-standard.com/markets/capital-market-news/japanese-markets-reach-record-highs-124071100753_1.html

China's Markets End Lower As Inflation Slips To 0.2%

The dollar recovered from a three-week low and Treasury yields rose slightly as investors eyed the second round of testimony by Federal Reserve Chair Jerome Powell.

https://www.business-standard.com/markets/capital-market-news/china-s-markets-end-lower-as-inflation-slips-to-0-2-124071000770_1.html

web3 Quiz Championship - with total prize over 70k USD

TOKYO, July 10, 2024 /PRNewswire/ -- BLOCKSMITH & Co. ( Head office: Minato-ku, Tokyo; President and CEO: Tetsuya Sanada ) held the "web3 Quiz Championship," which will give away 70 thousand USD worth of prizes, on its quiz app "QAQA," currently in beta version.

https://www.benzinga.com/pressreleases/24/07/n39703271/web3-quiz-championship-with-total-prize-over-70k-usd

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Japanese Yen Price History

29.01.2024 - USD/JPY Forex was down 0.3%

• The bearish movement in the USD/JPY currency pair could be attributed to growing speculation that the Bank of Japan (BOJ) may abandon its negative interest rate policy soon, potentially strengthening the Japanese yen against the US dollar.
• Despite the bearish movement, the Japanese market reached all-time highs, with the Nikkei 225 index setting records. This positive performance of the Japanese market may have further boosted the strength of the yen.
• The opening of a semiconductor plant in Japan by Taiwan's chip giant TSMC may have also contributed to the bullish sentiment surrounding the Japanese yen, signaling potential economic growth and technological advancements in Japan that attract investors to the yen.

29.03.2024 - USD/JPY Forex was down 0.2%

• The Japanese yen hit its weakest levels since April 1990, falling to 160 against the US dollar, indicating a significant devaluation of the yen.
• The bearish movement in USD/JPY can be attributed to the weakening of the Japanese yen amidst a nervous and illiquid market, with traders testing key levels and stop-loss orders.
• The overall market sentiment was mixed, with Asian shares rising on optimism over the Wall Street tech rally but the yen crumbling against the US dollar, possibly due to concerns about the Federal Reserve policy meeting.
• The USD's surge and the yen's weakness may have been influenced by the broader economic dynamics, including the reemergence of 1980s-style trade policies like the proposed 60% tax on Chinese goods, creating volatility in the currency markets.

26.03.2024 - USD/JPY Forex was up 0.7%

• The Japanese yen reached a new 34-year low against the US dollar following the Bank of Japan's decision to keep interest rates steady. The absence of clear guidance from the BoJ disappointed investors, resulting in a weaker yen.
• The USD/JPY pair achieved a record high as the BoJ began its two-day monetary policy meeting with expectations of maintaining interest rates at zero. This expectation of stability likely boosted the US dollar relative to the yen.
• The drop in the Nikkei Stock Average by 2.16%, driven by profit-taking and negative signals from Wall Street, could have additionally weakened the yen, contributing to the upward momentum of the USD/JPY pair.
• The green loan secured by the State-owned REC from the Italian export credit agency SACE to support eco-friendly projects in India did not have a direct impact on the currency pair but highlighted global financial transactions involving the Japanese yen.

11.06.2024 - USD/JPY Forex was down 1.6%

• The bearish movement of USD/JPY might be linked to the dollar's recovery from a recent low and a slight increase in Treasury yields as investors monitored Federal Reserve Chair Jerome Powell's latest testimony.
• The yen's strength against the dollar could have been influenced by the strong performance of the Japanese market, hitting record highs, thus impacting the bearish trend in the USD/JPY pair.
• Positive market sentiment towards the yen could have been influenced by Sony's stock increase following a merger with Paramount Global and KKR's decision to reduce its stake in Kokusai Electric, both Japanese companies, potentially contributing to the downward movement of USD/JPY.

12.06.2024 - USD/JPY Forex was down 2.0%

• The USD/JPY pair faced a bearish movement as the Japanese yen continued to weaken due to significant interest rate differentials between the Bank of Japan and the Federal Reserve.
• Traders rushed for safe-haven assets like gold, real estate, treasuries, and the yen, anticipating a potential rate cut in September following positive inflation data in the US.
• The record highs in the Japanese markets, with the Nikkei average surpassing 42,000 points for the first time, could have also contributed to the yen's decline as investors may have shifted focus towards Japanese equities.
• The overall cautious market sentiment ahead of the US consumer price index release and the slight recovery of the dollar from a three-week low might have added pressure on the USD/JPY pair, leading to its bearish movement.