The Japanese Yen (JPY) has gained strength against the US Dollar (USD) after Tokyo’s Consumer Price Index (CPI) data was released, signaling a rise in inflation. This increase has reinforced the Bank of Japan’s (BoJ) hawkish stance on monetary policy, leading to downward pressure on the USD/JPY pair.
With Tokyo’s CPI reaching 2.6% year-on-year in August, up from 2.2% in July, and core CPI rising to 1.6% YoY, the JPY has seen a positive trend. However, Japan’s Unemployment Rate also climbed unexpectedly to 2.7% in July, the highest since August 2023.
Despite this, the US Dollar remains steady following strong economic data from Thursday. But with the Federal Reserve hinting at potential rate cuts, the USD’s gains could be limited in the near future.
Market Insights: JPY Strengthens on BoJ’s Hawkish Stance
- Markets anticipate a rate cut by the Fed in September, according to the CME FedWatch Tool.
- Fed Atlanta President Raphael Bostic suggests a possible rate cut due to cooling inflation and high unemployment, pending further data confirmation.
- US GDP grew at 3.0% in Q2, surpassing expectations, while Initial Jobless Claims decreased to 231,000.
- US Core PCE Price Index showed a 2.8% increase in Q2, below forecasts, indicating a slowdown in inflation growth.
- Japanese Finance Minister highlights various factors influencing FX rates, including monetary policies and market sentiment.
- BoJ Governor Kazuo Ueda reaffirms commitment to current monetary policy, with potential adjustments based on economic conditions.
Technical Analysis: USD/JPY Stays Below 145.00
USD/JPY is trading around 144.80, showing a weakening bearish bias but with RSI confirming the downtrend. Support levels are at 144.50 and 141.69, while resistance is at 145.15 and 154.50.
USD/JPY: Daily Chart
Japanese Yen PRICE Today
Today’s percentage change of Japanese Yen (JPY) against major currencies shows JPY as the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | 0.05% | -0.14% | 0.00% | -0.03% | -0.14% | 0.00% | |
| EUR | -0.04% | -0.00% | -0.19% | -0.03% | -0.07% | -0.20% | -0.03% | |
| GBP | -0.05% | 0.00% | -0.19% | -0.03% | -0.07% | -0.19% | -0.03% | |
| JPY | 0.14% | 0.19% | 0.19% | 0.17% | 0.13% | -0.00% | 0.18% | |
| CAD | -0.01% | 0.03% | 0.03% | -0.17% | -0.06% | -0.15% | 0.00% | |
| AUD | 0.03% | 0.07% | 0.07% | -0.13% | 0.06% | -0.13% | 0.04% | |
| NZD | 0.14% | 0.20% | 0.19% | 0.00% | 0.15% | 0.13% | 0.16% | |
| CHF | -0.01% | 0.03% | 0.03% | -0.18% | -0.00% | -0.04% | -0.16% |
Japanese Yen FAQs
- What Determines JPY Value? – The Japanese Yen’s value is influenced by various factors like the Japanese economy, BoJ policy, bond yield differentials, and market sentiment.
- How Does BoJ Impact JPY? – BoJ interventions and policies play a crucial role in determining the Yen’s value, with ultra-loose monetary policies leading to depreciation.
- Policy Divergence Impact on JPY – A policy gap between BoJ and other central banks, like the Fed, can strengthen the US Dollar against the Yen.
- JPY as a Safe-Haven – During market turmoil, JPY is often considered a safe-haven, attracting investors seeking stability.