USD/JPY is the forex ticker that reports the value of the US dollar to the Japanese yen ed ifollow how many yen it takes to buy a dollar American. The dollar-yen is one of the most traded forex pairs, second only to the EUR/USD. It has very high liquidity ed And a point of reference from the Asian economic health and globaland. what is coming very often used as currency in the “carry trade”, operation a lot current, which consists in obtaining financing in yen by paying near zero interest rates and investing in dollars or US government bonds That offer higher yields.
The USD/JPY carry trade is very profitable today since the Bank of Japan maintains negative rates, while the Fed ha brought the reference rate to 5.00/5.25% (fundamental before activate any operation is to perform the projections on the future trend of the currencies involved, eventually protectsndosi from exchange risk with transactions swap Basic).
Regarding Japan’s monetary policy, at the Bank of Japan meeting in April il committee led by Ueda I had announced plans to conduct a broad-based review of monetary policy, to be completed between twelve and eighteen months. In a in addition, the institute mentioned the need for a progressive increase in wages, in line with the wishes of the Chief Executive In person. For the current fiscal year, the BoJ has said it expects inflation at 1.8% (revising upwards the estimate made in January) and 2% in fiscal 2024, from estimates of 1.8%.
The USD/YEN exchange rate touched 151.96 yen per dollar in October/2022, on the significant strengthening of the dollar against all currencies, to then fall back to 127.22 making a normal retracement. It currently stands at 140 (yen to $1) and analysis indicates that will have an irregular trend that it will lead to touch 131/128downwards. Support at 115. With the October high exceeded, the climb will resume, targeting 160/164 yen per dollar.
The currency pairs the most active and most traded on the global forex market are: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD USD/CAD and NZD/USD.
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