USD/JPY: Yen under pressure again – Societe Generale

💡 DMK Insight

The Japanese Yen’s decline is a key signal for traders, especially with Takaichi’s cautious stance on rate hikes. This weakness could lead to increased volatility in forex pairs involving the Yen, particularly against the USD and EUR. If the Yen continues to weaken, it may push traders to consider long positions in USD/JPY, especially if it breaks above recent resistance levels. Additionally, China’s export controls could have a ripple effect on Japanese equities and related markets, creating further opportunities or risks. Keep an eye on how these geopolitical tensions evolve, as they could impact market sentiment and lead to sudden price swings. Here’s the thing: while the mainstream narrative focuses on rate hikes, the real story is how external factors like China’s actions can amplify currency movements. Watch for any shifts in the Bank of Japan’s policy or further comments from Takaichi that could signal a change in direction.