USDJPY Analysis – On Monday, the Japanese yen held its ground at around 142.2 against the US dollar. Everyone is looking forward to the Bank of Japan’s decision on its monetary policy later this week. The main question is whether the bank will start to ease up on its very generous monetary policies.
Reuters – Just a few weeks ago, BOJ Governor Kazuo Ueda talked about different ways and how quickly the bank could increase interest rates if they decide to move away from their current policy of negative interest rates. However, according to Bloomberg, the BOJ officials are in no rush to make any big changes. They’re waiting to see real signs of wage increases that can support ongoing inflation before they act. Despite this, the yen is still quite strong, almost at its highest since July. This strength comes as the US dollar fell a lot after the US Federal Reserve hinted at reducing interest rates three times in 2024.