According to FXStreet, on September 24, the Japanese Yen (JPY) depreciated against the US Dollar (USD). The reason is due to concerns from the Bank of Japan (BOJ) that it has no plans to quickly increase interest rates. BOJ Governor Kazuo Ueda said the rate hike would only happen if inflation rose as expected.
Ueda also stressed that Japan's real interest rates are negative, which is beneficial for the economy and helps increase prices. 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 is monitoring the monetary policies of other central banks. He hopes that the BOJ will take appropriate measures and coordinate closely with the government.
The USD/JPY pair could depreciate as there is a possibility that the US Federal Reserve (FED) will 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.
Today, USD/JPY is trading around 143.70 (with some volatility). Analysis shows that this pair of currencies 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 threshold 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 anchored 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.
