Yen Struggles as Investors Question BoJ's Rate Hike ProspectsThroughout the first half of the European trading session on Monday, the Japanese Yen continues to struggle against the US Dollar, with the exchange rate slipping to 0.006436 as I write this article. Investor skepticism regarding the Bank of Japan's (BoJ) potential for further interest rate hikes plays a significant role in this downward trend. This uncertainty, combined with an overall positive market sentiment, is putting pressure on the traditionally safe-haven Yen.
Moreover, the recent widening of the yield gap between US and Japanese government bonds—intensified by the Federal Reserve's hawkish stance—further contributes to the Yen's decline. As the Fed signals a more aggressive monetary policy, the lower-yielding Yen becomes less attractive to investors.
In terms of market outlook, we are anticipating a continuation of this bearish trend for the Yen against the Dollar.
USD/JPY Previous Idea as reference:
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