Created
: 2025.10.07
- 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 posts modest gains above 150.00 on political stability concerns in Japan
World FX news
Breaking news
USD/JPY posts modest gains above 150.00 on political stability concerns in Japan
New
2025.10.07 08:01
2025.10.07 08:01
2025.10.07 08:01
- USD/JPY gains ground around 150.35 in Tuesday's early Asian session.
- Takaichi's policies may delay the BoJ's rate hike plans.
- Traders brace for signs that the US government will reopen as Congress is unable to pass a bill to continue funding operations.
The USD/JPY pair edges higher to near 150.35, the highest since August 1, during the early Asian session on Tuesday. The Japanese Yen (JPY) weakens against the US Dollar (USD) on political stability concerns after Japan's ruling Liberal Democratic Party (LDP) elected a new leader. Traders will keep an eye on the Fedspeak later on Tuesday.
Japan's ruling party has elected Sanae Takaichi as its new leader on Saturday, positioning the 64-year-old to be Japan's first female Prime Minister. Her victory caused traders to reduce bets that the Bank of Japan (BoJ) will hike interest rates this month, weighing on the JPY and creating a tailwind for the pair.
"Sanae Takaichi's surprise victory in the LDP leadership election marks an important turning point for Japan's policy and market outlook," Societe Generale strategists wrote in a note, pushing back the likely timing of the BOJ's next rate hike to December from October.
Markets reduce their bets of a Bank of Japan (BoJ) rate hike at its October meeting. Overnight index swaps are currently priced in nearly a 25% chance of an increase, down from a 60% possibility before the LDP's leadership vote.
The US government shutdown entered its second week on Monday, with lawmakers unable to make progress on a deal to restart funding. Additionally, the US President Donald Trump administration warned it was moving forward with plans to slash the federal workforce.
Traders await signs that the US federal government will reopen as the shutdown is leaving a void of US economic data, with last Friday's Nonfarm Payrolls (NFP) report for September delayed along with other key releases until the government reopens. Concerns over a prolonged US government shutdown could undermine the Greenback against the JPY in the near term.
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
: 2025.10.07
Related articles
USD/JPY posts modest gains above 150.00 on political stability concerns in Japan
2025.10.07 08:00NZD/USD Price Forecast: Bulls eye a break above 200-day SMA
2025.10.07 07:34EUR/USD falls on French political shock and shutdown lift Dollar
2025.10.07 07:02Fed Schmid: The Fed must maintain inflation credibility
2025.10.07 07:02Australian Dollar rises as Greenback softens on shutdown, dovish Fed outlook
2025.10.07 03:40FX Today: Fedspeak expected to grab all the attention
2025.10.07 02:45
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
WTI attracts some buyers to near $61.50 as OPEC+ opts for modest oil output hike
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.45 during the Asian trading hours on Tuesday.
New
2025.10.07 09:49Gold Price Forecast: XAU/USD drifts higher above $3,950 on global uncertainty
Gold price (XAU/USD) extends its rally to around $3,970 during the early Asian session on Tuesday. The precious metal edges higher on political uncertainty across the globe and the expectation of a US interest rate cut.
New
2025.10.07 08:56USD/JPY posts modest gains above 150.00 on political stability concerns in Japan
The USD/JPY pair edges higher to near 150.35, the highest since August 1, during the early Asian session on Tuesday. The Japanese Yen (JPY) weakens against the US Dollar (USD) on political stability concerns after Japan's ruling Liberal Democratic Party (LDP) elected a new leader.
New
2025.10.07 08:00NZD/USD Price Forecast: Bulls eye a break above 200-day SMA
The New Zealand Dollar advances on Monday and trades near its daily close at around 0.5840 as Tuesday's Asian session begins. Yesterday, the pair gained 0.20% but key resistance lies overhead with the 200-day Simple Moving Average (SMA) at 0.5848.
New
2025.10.07 07:34EUR/USD falls on French political shock and shutdown lift Dollar
EUR/USD retreats during the North American session sponsored by political turmoil in France and US Dollar strength, amid the sixth day of government shutdown in the US. The pair trades at 1.1714, down 0.24%.
New
2025.10.07 07:02Fed Schmid: The Fed must maintain inflation credibility
The President of the Kansas City Federal Reserve Bank Jeffrey Schmid crossed the newswires on October 6. He delivered hawkish remarks, saying that the Fed must maintain its inflation credibility and stressed that inflation is too high. He added that monetary policy is appropriately calibrated.
New
2025.10.07 07:02Gold blasts past $3,950 as shutdown, uncertainty fuels haven rush
Gold price rallies to a new record high past the $3,900 figure on Monday, hitting $3,970 as the US government continues its shutdown, while investors are pricing in another rate cut by the Federal Reserve (Fed) at the upcoming October 29 meeting. XAU/USD trades at $3,952, up 1.73%, at the time of w
New
2025.10.07 03:49Australian Dollar rises as Greenback softens on shutdown, dovish Fed outlook
The Australian Dollar (AUD) trades on the front foot against the US Dollar (USD) on Monday, extending its recovery as the Greenback's early strength fades. The pair rebounds toward the upper end of its recent consolidation band after swinging sharply in both directions earlier in the day.
New
2025.10.07 03:40Dow Jones Industrial Average wobbles near record highs
The Dow Jones Industrial Average (DJIA) struggled to keep its footing on Monday, kicking off the new trading week opening at record highs above 46,800. The Dow slipped early on Monday after investors briefly showed frayed nerves, but general market sentiment continues to drift into the high side.
New
2025.10.07 03:05FX Today: Fedspeak expected to grab all the attention
The US Dollar (USD) rose to multi-day highs on Monday, propped up almost exclusively by the strong depreciation of the Japanese Yen.
New
2025.10.07 02:45Disclaimer:
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
