Yen Retreats After Brief Rally

London: 29 July 2024 (TraderMade): The Japanese Yen (JPY) has unexpectedly eased back after a recent surge against the US Dollar (USD). This event comes just days before crucial central bank meetings in both Japan and the US, raising questions about the Yen's future trajectory.

Rally Falters Amidst BoJ Policy Uncertainty

The Yen had enjoyed a brief period of strength, fueled by speculation that the Bank of Japan (BoJ) might finally raise interest rates for the first time since 2007. However, this optimism appears to be fading. The lack of concrete signals from the BoJ regarding a policy shift is contributing to the Yen's retreat.

Government Pressure on BoJ to Address Weak Yen

Adding to the intrigue, Japan's top economic council has urged the government and the BoJ to consider the impact of a weak Yen while formulating future policy.