According to Lao Dong, at the end of the first week of July, the Japanese Yen (JPY) maintained a stable trend and showed signs of increasing compared to the USD when the US market closed for the National Day holiday, causing liquidity to decrease and the USD/JPY exchange rate to fluctuate around 144.50.
Although the market is moving sideways, fundamental factors are still supporting the Yen, opening up the possibility of this currency increasing in price in the coming time.
In the market, investors are cautious as they wait for new economic data from the US and Japan, along with monetary policy direction from the Bank of Japan (BoJ). Currently, Japan is still facing persistent inflationary pressure, forcing the BoJ to continue its gradually tightening monetary policy in the coming time, supporting the Yen to strengthen.
In addition, concerns about global economic growth, geopolitical tensions and fluctuations in the stock market have caused demand for safe-haven assets such as the Yen to continue to increase, especially as investors are concerned about risks when the US economy shows signs of cooling down.
Technically, the USD/JPY exchange rate is fluctuating in a narrow range, and many analysts believe that if the USD weakens and the exchange rate breaks below 143.50, the Yen will have the opportunity to increase strongly, pulling the exchange rate to the 142.50, and possibly even falling further to 140 in the coming weeks. Currently, market forces signals show that USD buying power is weakening, while demand for holding the Yen is increasing.
Investors are also waiting for the upcoming US jobs report and important inflation data to assess the possibility of the US Federal Reserve (Fed) continuing to keep high interest rates for a long time. If the Fed signals policy easing, the USD could weaken, supporting the Yen to increase.
In the context of the global market still experiencing many uncertainties, the Yen continues to act as a "safe haven" for investors, and the prospect of the Yen increasing in the medium term is being consolidated.
Investors are advised to closely monitor important prices, especially the support level of 143.50, to seize the opportunity if the Yen's uptrend is more clearly activated next week.
