The USD/JPY pair continues to trend lower, reflecting market concerns over potential shifts in monetary policy. The yen’s recent strength is attributed to growing speculation that the Bank of Japan (BOJ) may pivot toward a more hawkish stance, while the Federal Reserve’s outlook remains uncertain amid cooling inflation data in the U.S.
Source – FXStreet
Investor sentiment has tilted bearish for the USD/JPY, as market participants anticipate further adjustments in Japanese bond yields that could attract more capital into the yen. Meanwhile, the dollar struggles for direction as mixed U.S. economic indicators create uncertainty about the Fed’s next moves. The combination of these factors could sustain downside momentum for the pair in the near term.
