USD/JPY initiates a corrective phase.
The devaluation of the Japanese yen against the US dollar has temporarily paused, with the current quote for USD/JPY at 144.59. On one hand, the JPY is undergoing a technical pullback following its recent significant weakening. On the other hand, the diminished risk appetite in the currency market has sparked increased demand for safe-haven assets. Although the yen has not consistently fulfilled this role in recent times, it is currently displaying resilience in this regard.
Meanwhile, concerns persist regarding the possibility of intervention measures by Japanese authorities, which have kept the USD/JPY below the 145.00 mark. If signals indicate that interventions are unlikely, the currency pair could experience a notable rise.
Looking at the long-term perspective, the yen continues to be influenced by the factor of interest rate differentials. The Bank of Japan maintains an ultra-loose monetary policy stance, exerting downward pressure on the JPY.