Yen exchange rate today
The Japanese Yen (JPY) has recovered after a slight decrease, continuing the increase in the past two days.
Uncertainty in US President Donald Trump's trade policy and escalating geopolitical tensions are causing investors to seek safe-haven assets such as the Yen.
In addition, expectations that the Bank of Japan (BoJ) may continue to raise interest rates in 2025 despite the temporary break last week are also supporting the value of this currency.
Yen struggles amid mixed factors, waiting for important data
However, positive sentiment surrounding the possibility of cooling down the US-China trade war and positive signals from the US economy, such as stable employment data and good growth services, are holding back the stronger increase of the Yen.
Many investors are still choosing to stay on the sidelines, waiting for the Federal Reserve's two-day monetary policy meeting starting next Tuesday. The results of this meeting will play an important role in determining the direction of the USD as well as the USD/JPY pair.
The Bank of Japan last week gave a cautious outlook when lowering its growth and inflation forecasts, causing investors to adjust their expectations for the next interest rate hike. However, the BoJ has stressed its commitment to continue raising interest rates if the economy is on track.
In addition, the complex geopolitical situation also contributes to investors looking for shelter. Russia said Ukraine had repeatedly attacked Moscow with drones, while Israel airstrikes Yemen in response to a rocket attack by Houthi forces on its main airfield. The Houthi group warned that it will continue to attack and impose air blockades on Israel.
Meanwhile, President Donald Trump has just announced a 100% tax on foreign films but also hinted at the possibility of renegotiating some trade agreements and reducing taxes on China. China also said it is considering resuming trade talks with the US.
In the context of a series of mixed information, investors are waiting for a clear signal from the Fed's meeting to determine the next trend in the currency market.
