The Yen Strengthens - Could USD/JPY Still Fall?
The Japanese yen continued to strengthen in the Asian session, while the US dollar weakened for the fourth consecutive day and approached a nearly two-week low. Safe-haven funds flowed into the JPY due to US-China trade tensions and geopolitical uncertainty. Sentiment was also helped by easing concerns about Japan's fiscal health, making the yen's gains over the past week seem "sticky."
Meanwhile, Japanese politics are still in turmoil after the LDP-Komeito coalition collapsed, fueling speculation that the BoJ could delay its next interest rate hike—making yen traders cautious about pursuing gains.
However, the US dollar remains pressured by expectations of a more dovish Fed and a prolonged government shutdown. As a result, the short-term bias for USD/JPY remains bearish, but it is highly sensitive to policy and political headlines. (az)
Source: Newsmaker.id
