Markets.com Logo
euEnglish
LoginSign Up

Forex pair: The Japanese Yen drops to a new low against the strong US dollar

Oct 23, 2024
3 min read
Table of Contents
  • 1. Strong US dollar sends yen to 3-month new low
  • 2. Japanese Yen bears remain in control 

forex-market-width-1200-format-jpeg.jpg

On Wednesday, the Japanese Yen (JPY) continues to underperform amid uncertainty regarding the timing and pace of future rate hikes by the Bank of Japan (BoJ). Forex pair USD/JPY benefits from rallying US Treasury bond yields and sustained US Dollar strength.
 


Strong US dollar sends yen to 3-month new low


The Japanese Yen (JPY) continues to struggle on Wednesday amid uncertainty surrounding the Bank of Japan's (BoJ) future rate hikes. Despite recent verbal interventions from Japanese officials and a generally weaker risk sentiment that typically favors the safe-haven JPY, bullish sentiment remains strong. Meanwhile, sustained interest in the US Dollar (USD) drives the USD/JPY pair to 152.35, its highest point since July 31.

The USD Index (DXY), which measures the Greenback against a basket of currencies, reaches its highest level since early August, fueled by expectations for a less aggressive Federal Reserve policy easing. Concerns over deficit spending following the November 5 US Presidential election also support rising US Treasury bond yields, hitting their highest in nearly three months, which bodes poorly for the lower-yielding JPY and suggests further gains for the USD/JPY pair.
 


Japanese Yen bears remain in control 


The Japanese Yen has fallen to its weakest point in nearly three months against the US Dollar, fueled by uncertainty surrounding the Bank of Japan's rate-hike plans. JPY bears appear undeterred by recent verbal interventions from Japanese officials, particularly after the Yen slid below the critical 150.00 psychological level.

Expectations of slower rate cuts by the Federal Reserve, along with concerns about rising fiscal deficits following the US Presidential election, have triggered a selloff in the bond market. Consequently, the yield on the benchmark 10-year US government bond has risen to levels not seen since July, propelling the US Dollar to its highest point since early August. San Francisco Fed President Mary Daly emphasized that the economy is in a stronger position, with inflation declining and the labor market stabilizing.

Odds are increasingly favoring former President Donald Trump in next month's US election, raising concerns about potential inflationary tariffs. As markets brace for a possible Israeli strike on Iran, Hezbollah launched rockets at two bases near Tel Aviv and a naval facility west of Haifa on Tuesday.

Diplomatic efforts have yet to resolve the year-long Middle Eastern conflict, dampening investors' interest in riskier assets. Traders are now awaiting the release of US Existing Home Sales for momentum, while attention remains on BoJ Governor Kazuo Ueda's speech at the IMF-hosted "Governors Talk." The focus will then shift to Tokyo's consumer inflation data on Friday, which could impact the JPY ahead of Japan's general election.

In conclusion, the Japanese Yen has fallen to a new low against the strong US Dollar, reflecting ongoing economic uncertainties and the impact of external factors, such as rate hike speculation and geopolitical tensions. This trend underscores the challenges facing the Yen in the current market environment.
 



When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
 


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Frances Wang
Written by
Frances Wang
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    0.21%
  • EUR/USD

    chartpng

    --

    0.02%
  • Cotton

    chartpng

    --

    0.72%
  • AUD/USD

    chartpng

    --

    0.02%
  • Santander

    chartpng

    --

    -2.17%
  • Apple.svg

    Apple

    chartpng

    --

    0.50%
  • easyJet

    chartpng

    --

    -2.63%
  • VIXX

    chartpng

    --

    0.00%
  • Silver

    chartpng

    --

    0.04%
Tags DirectoryView all
Table of Contents
  • 1. Strong US dollar sends yen to 3-month new low
  • 2. Japanese Yen bears remain in control 

Related Articles

Value of bitcoin today: BTC/USD over 106K as Middle East tensions eased

Value of bitcoin today: the world of cryptocurrency continues to evolve, and recent developments have highlighted the significant role Bitcoin plays in times of geopolitical instability.

Frances Wang|1 day ago

Market movers today: Carnival, Tesla, Mastercard, SOFI

Market movers today: the current economic environment presents a complex landscape for various companies across different sectors.

Frances Wang|1 day ago

Morning Note: Ceasefire Boosts Markets; Dovish Fed & RBA Rate Cut Bets Emerge

U.S. stock futures rose following President Donald Trump’s announcement of a ceasefire timeline between Israel and Iran, referring to the recent conflict as “The 12-Day War.”

Tommy Yap|1 day ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Weekend Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.