According to FXStreet, on September 24, the Japanese Yen (JPY) depreciated against the US Dollar (USD). The reason was due to concerns from the Bank of Japan (BOJ) that it has no plans to quickly raise interest rates. BOJ Governor Kazuo Ueda said that the interest rate increase will only happen if inflation increases as expected.
Mr. Ueda also emphasized that Japan's real interest rates are negative, which is good for the economy and helps prices rise. He said the BOJ will raise interest rates if the economy and prices move in line with forecasts.
Japanese Finance Minister Shunichi Suzuki said he was monitoring the monetary policies of other central banks and expected the BOJ to take appropriate measures in close coordination with the government.
The USD/JPY pair could fall as the US Federal Reserve (FED) is likely to cut interest rates in 2024. The market currently rates a 50% chance that the FED will cut interest rates by 75 basis points, bringing interest rates down to around 4.0 - 4.25% by the end of the year.
USD/JPY is trading around 143.70 today (volatile). Analysis shows that the pair is in a downtrend. The RSI shows that the bearish sentiment continues.
If USD/JPY falls below 143.01, it could continue to fall to 139.58, the lowest level since June 2023. Conversely, if it breaks above 144.30, the pair could test the psychological level of 145.00.
According to Lao Dong, at 2:00 p.m. on September 24, the exchange rate of the Japanese Yen against the US Dollar is currently hovering around the highest level of the day at 144,119 JPY and the lowest at 143,4247 JPY. However, the exchange rates of these two currencies are still in a downward trend.
