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>>Japanese Yen Approaches 155 per Dollar as Analysts Anticipate Limited Further Weakness

Japanese Yen Approaches 155 per Dollar as Analysts Anticipate Limited Further Weakness

crypthub

about 6 hours ago

Yen Slide and Context

The USD/JPY pair is nearing the 155.00 psychological barrier. This marks a 40% depreciation since 2021. The move follows the BoJ’s March 2024 exit from negative rates. The US‑Japan interest‑rate gap still drives capital toward the dollar.

Limits to Further Weakness

Japanese officials have issued verbal warnings that raise the cost of short‑yen bets. PPP models show the yen is at a decade‑high undervaluation, prompting mean‑reversion pressure. Technical analysis places 155‑158 a strong resistance zone. CFTC data reveal extreme short positions, making a sharp rebound likely.

Economic Impact

A weak yen boosts exporters such as Toyota and Sony, lifting corporate profits. Conversely, import‑driven inflation strains households and dampens consumption. Policymakers must balance growth support with rising living costs.

Outlook

Further yen decline depends on US data, Fed policy and any BoJ rate moves. Wage growth above 3% could narrow the rate differential and support the currency. Institutional hedging by Japanese pension funds also provides a stabilising floor.