According to FStreet, the Japanese Yen (JPY) increased slightly against the US Dollar (USD) in today's trading session, but has not really strengthened.
According to analysts, the possibility of the JPY continuing to recover is still quite dim because the Bank of Japan (BoJ)'s interest rate hike plan is still unclear. In addition, the market sentiment is more risk-on, so the Yen, which is considered a safe asset, is unlikely to be bought strongly.
Meanwhile, expectations that the US Federal Reserve (Fed) will cut interest rates have weakened and are expected to cut by only 25 basis points in November, keeping US Treasury yields high.
This supports the USD to maintain its strong position, making it difficult for the JPY to rise. Therefore, any decline in the USD/JPY pair will likely be seen as a buying opportunity but not for long.
Market highlights affecting the Japanese Yen exchange rate include: Japanese Prime Minister Shigeru Ishiba's speech, reducing market expectations for a BoJ rate hike in the near future.
US stock indexes such as the S&P 500 and Dow Jones continued to hit record highs, thanks to expectations of positive business results.
The US dollar continued to strengthen, reaching its highest level since August, on expectations that the Fed will cut interest rates at a slower pace.
Some Fed officials have said they will be more cautious about cutting interest rates, based on the economic situation and actual data.
Traders are now expecting the Fed to cut interest rates by 25 bps (basis points) in November, with a more than 15% chance of no rate cut.
According to Lao Dong, at 2:00 p.m. on October 15, the USD/JPY exchange rate is currently fluctuating between 149.31-149.84, meaning 1 USD is equivalent to about 149.5 Japanese Yen.
