USDJPY Analysis – January-11-2024

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The USDJPY has recently weakened, falling to more than 144 against the dollar. This change comes as investors wait for important inflation data from the United States. This data will likely affect the Federal Reserve’s approach to its monetary policy. Additionally, Japan is anticipating its inflation figures soon. These will help shape local interest rate decisions.

Last week, it marked a significant drop for the yen, which lost 2.5% in value. This occurred as the US dollar saw a strong recovery. Investors are reconsidering their expectations for the US central bank’s immediate and significant interest rate reductions this year.

In Japan, the Bank of Japan is sticking to its expansive monetary policy. They decided not to comment on pending negative interest rates in their December meeting. The board members at this meeting discussed when to end the bank’s extensive stimulus measures. However, many members expressed that they are in no hurry to take this step.

USDJPY Analysis - January-11-2024

USDJPY Currency Pair 4-H Chart