Live Updates > Live Update Details
2025-09-12 18:23:15
[Yen Under Pressure, Dollar Plays a Cloud Game] ⑴ The USD/JPY pair climbed from 147.13 to 147.98 on Friday, but remained capped by the "cloud" area between 146.66 and 148.16. A close above the cloud top would constitute a strong bullish signal. ⑵ Notably, historical data shows that the yen tends to weaken against the dollar and euro in September, potentially signaling continued pressure on the yen in the short term. ⑶ Despite this, there has been no significant shift in the commitments made by the US and Japan on exchange rate policy, with both sides retaining room for market intervention, leaving market participants with uncertainty. ⑷ A former Japanese foreign exchange diplomat has suggested that the Bank of Japan should be wary of the inflationary risks posed by a weak yen, raising market concerns about future monetary policy trends. ⑸ BlueBay Chief Investment Officer Mark Dowding previously believed that the Federal Reserve's renewed interest rate cut cycle would dominate the next phase of the Treasury yield curve steepening trade, potentially helping stabilize long-term yields. However, the market does not yet fully price in this expectation.
