JPY weakness is the new reality. Overview for 14.11.2023

14 ноября 2023 - Fx4News

The Japanese yen remains exceptionally weak when paired with the US dollar. The current USDJPY exchange rate stands at 151.67.

Yesterday, USDJPY came close to reaching 152.00.

So, the yen is positioned near three-decade lows, having endured significant pressure. What comes next? Most probably, it will continue to decline because the fundamental background has not changed.

The Bank of Japan's ultra-soft monetary policy continues to oppose to the trend of higher interest rates in other countries.

Yesterday, the yen did attempt to stabilise the situation, but it was related to executing orders on options expiring this week. The market might hope for governmental interventions, but alas.

Even if the Bank of Japan decides to abandon its soft monetary policy, it will do so gradually. Therefore, against such a backdrop, the JPY does not expect any significant support.