According to FXStreet, on October 28, the Japanese Yen (JPY) fell to a three-month low against the US Dollar (USD).
The main reason is that Japan's ruling coalition lost its majority in parliament, raising concerns that the Bank of Japan (BoJ) may find it difficult to raise interest rates.
Japan's ruling coalition failed to win a majority in parliament for the first time since 2009 in Sunday's election, raising doubts about the BoJ's ability to continue raising interest rates, sending the yen lower early in the week.
NHK reported that Prime Minister Ishiba Shigeru's coalition won only 215 of the 465 seats in the lower house.
At the same time, increased risk sentiment reduced demand for safe-haven assets such as the Yen. Strong buying of the US Dollar also pushed the USD/JPY pair higher.
New data from the US showed the economy remained stable, reinforcing expectations that the Federal Reserve will make only small rate cuts next year. In addition, the possibility of Donald Trump's election and concerns about the budget deficit also contributed to the increase in US Treasury yields, making the dollar stronger and the low-yielding yen less attractive.
According to analysts, the falling Japanese Yen means that USD/JPY is in a bullish trend, after breaking through important levels. This suggests the possibility of further gains, with the next target around 154.35-154.40. This momentum could even take the pair to the psychological level of 155.00 in the short term.
According to Lao Dong, at 12:00 on October 28, the USD/JPY exchange rate is currently fluctuating between 152.67-153.88 JPY/USD.
See more news about Yen exchange rates HERE.
