The Japanese Yen strengthened against the U.S. Dollar, reflecting positive momentum amid renewed interest in safe-haven currencies. The gains come as market participants reassess the Federal Reserve’s policy outlook, with a softer tone on inflation expectations fueling the USD’s pullback.
Despite this traction, the Yen’s upside potential appears constrained, weighed down by Japan’s ultra-loose monetary policy. The Bank of Japan has shown no immediate signs of tightening, keeping the currency under pressure against other major peers. Analysts suggest that while the Yen’s rally against the USD is notable, its sustainability will depend on further clarity from both central banks.
