The Yen Has Turned the Market Around: USDJPY Plunges Nearly 5%
The Japanese yen has unexpectedly transformed from one of the market’s weakest currencies into a growth leader. On September 8, USDJPY fell to 152.89 — its lowest level since February, while the pair had recently been trading around 160. Since the beginning of September, the yen has strengthened by approximately 4.5%, forcing traders to reassess the pair’s further trajectory.
This time, the yen’s rise is driven not only by the threat of currency intervention. The market is increasingly preparing for a rate hike by the Bank of Japan at its September 17–18 meeting. A 25-basis-point rate increase to 1.25% is now almost fully priced in.
