The substantial advantage of holding capital in the US dollar (USD) compared to the Japanese yen (JPY) remains a consistent bullish factor for the USD/JPY pair.
For any lasting impact on the yen's value, Ministry of Finance interventions must be accompanied by interest rate hikes by the Bank of Japan, backed by a credible monetary policy.
Officials at the bank are likely to raise their inflation expectations, providing more room for policy tightening and potentially supporting the Japanese yen in the near term.
#usdjpy-pair #us-treasury-yields #bank-of-japan-policy-meeting #interest-rate-differentials #forex-market-interventions
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