The USD/JPY currency pair has surged above 156.50, reaching its highest level since 1990, following the release of Japan’s Gross Domestic Product (GDP) data. The Japanese economy expanded by 0.5% in the third quarter, surpassing expectations of a 0.3% increase. Despite this growth, the yen weakened against the U.S. dollar, as investors anticipate the upcoming U.S. retail sales report, which is expected to provide further insights into the Federal Reserve’s monetary policy trajectory.
Analysts suggest that the yen’s depreciation may be attributed to the Bank of Japan’s commitment to maintaining its ultra-loose monetary policy, contrasting with the Federal Reserve’s more hawkish stance. The forthcoming U.S. retail sales data is anticipated to influence market sentiment, potentially impacting the USD/JPY pair’s movement in the near term.
