Created
: 2025.10.06
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/JPY rises above 149.50, Takaichi wins as Japan's Prime Minister may delay BoJ rate hikes
World FX news
Breaking news
USD/JPY rises above 149.50, Takaichi wins as Japan's Prime Minister may delay BoJ rate hikes
New
2025.10.06 08:51
2025.10.06 08:51
2025.10.06 08:51
- USD/JPY jumps to around 149.65 in Monday's early Asian session.
- Analysts believe Takaichi's victory reduces chance of a BoJ rate hike in the October meeting.
- Two more Fed rate cuts are expected this year.
The USD/JPY pair climbs to near 149.65 during the early Asian session on Monday. The Japanese Yen (JPY) faces some selling pressure against the Greenback after a ruling-party vote for Sanae Takaichi to become Japan's next Prime Minister.
Reuters reported on Sunday that Japan's ruling party elected Sanae Takaichi as its new leader on Saturday, positioning the 64-year-old to become Japan's first female Prime Minister. A vote in parliament to replace outgoing Prime Minister Shigeru Ishiba is scheduled for October 15. Takaichi is favoured as the ruling coalition has the largest number of seats.
The victory of Takaichi raises the chance that the Bank of Japan (BoJ) will avoid raising interest rates this month, weighing on the JPY and acting as a tailwind for the pair. "Takaichi is not seen as supportive of interest rate hikes, which could make it more difficult for the BOJ to proceed with tightening," said Kazutaka Maeda, an economist at Meiji Yasuda Research Institute.
On the USD's front, fears of a prolonged US government shutdown might cap the upside for the pair. The US Nonfarm Payrolls (NFP) report for September was due to be published on Friday, but was not released due to the government closure. If the shutdown lasts for a long time, investors will begin to question governability in the US. The rate futures market has priced in about 47 basis points (bps) of rate cuts for the remainder of the year, or just under two reductions, according to LSEG calculations.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan's mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ's stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.
Last updated
: 2025.10.06
Related articles
US Treasury's Bessent: Japanese government gives BoJ policy space, avoid excess FX volatility
8 minutes agoNZD/USD Price Forecast: Rises ahead of Fed as USD softens
38 minutes agoGBP/JPY Price Forecast: Sinks nearly 200 pips, tests 202.00
2025.10.29 08:12USD/JPY weakens below 152.50 as Japan's Takaichi eases policy concerns
2025.10.29 08:06EUR/USD inches higher as US-China optimism pressures US Dollar
2025.10.29 07:58Australia CPI expected to edge higher ahead of RBA rate decision
2025.10.29 05:00
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
US Treasury's Bessent: Japanese government gives BoJ policy space, avoid excess FX volatility
US Treasury Secretary Scott Bessent said on Wednesday that the government's willingness to allow the Bank of Japan (BoJ) policy space will be key to anchoring inflation expectations and avoiding excess foreign exchange (FX) volatility.
New
2025.10.29 09:07Gold Price Forecast: XAU/USD falls to near $3,950 on US-China trade optimism
Gold price (XAU/USD) tumbles to a three-week low near $3,950 during the early Asian session on Wednesday. The precious metal extends its downside as hopes for progress in US-China trade talks dimmed its safe-haven allure.
New
2025.10.29 08:56NZD/USD Price Forecast: Rises ahead of Fed as USD softens
The Kiwi Dollar edges up 0.23% on Tuesday as the Greenback weakens ahead of the Federal Reserve's monetary policy meeting on Wednesday, at which the central bank is expected to cut rates by 25 basis points. The NZD/USD trades at 0.5783 at the time of writing.
New
2025.10.29 08:37GBP/JPY Price Forecast: Sinks nearly 200 pips, tests 202.00
The GBP/JPY plunged sharply on Tuesday, close to 200 pips or 0.97% as the cross-pair slides below the 202.00 milestone, for the first time since last Friday. At the time of writing, the pair trades at 201.94 virtually unchanged, as Wednesday's Asian session begins.
New
2025.10.29 08:12USD/JPY weakens below 152.50 as Japan's Takaichi eases policy concerns
The USD/JPY pair attracts some sellers to around 152.20 during the early Asian session on Wednesday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) after officials ease policy concerns.
New
2025.10.29 08:06EUR/USD inches higher as US-China optimism pressures US Dollar
EUR/USD registers modest gains on Tuesday, yet it remains trading within familiar levels amid the lack of catalysts as the US government remains shut. However, upbeat news regarding the US-China trade war, weakened the Dollar and boosted the Euro. The pair trades at 1.1654, up 0.09%.
New
2025.10.29 07:58Australia CPI expected to edge higher ahead of RBA rate decision
Australia will release inflation updates on Wednesday, one week ahead of the Reserve Bank of Australia (RBA) monetary policy meeting, scheduled for November 3-4.
New
2025.10.29 05:00Gold slips below $4,000 as US-China trade hopes lift risk appetite
Gold price drops 0.63% on Tuesday during the North American session with the yellow metal suffering from its safe-haven appeal as hopes of a de-escalation of the US-China trade war keep ebbs and flows going toward riskier assets like US equities.
New
2025.10.29 04:06FX Today: The Fed and the BoC are expected to lower their rates
In quite a volatile day, the US Dollar (USD) traded with modest losses, maintaining a gradual decline so far this week, always amid a steady market caution ahead of the Federal Reserve (Fed) event on Wednesday, where a 25-basis-point rate cut is fully priced in.
New
2025.10.29 03:54AUD/USD firms as traders brace for Australia Q3 inflation data and Fed decision
The Australian Dollar (AUD) edges higher against the US Dollar (USD) on Tuesday, extending its winning streak for the fifth consecutive session as the Greenback stays under pressure ahead of the Federal Reserve's (Fed) interest rate decision on Wednesday.
New
2025.10.29 03:39Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
