A Detailed USDJPY Research - Downside Shall Come

Huge jump on USDJPY has happened in the year of 2021 and 2022. Mostly due to its loose monetary policy and still ultra-low interest rate.

Although DXY remains strong, I DO BELIEVE that we would probably see some USDJPY downside incoming.

From a political perspective, we see Abe's death recently which triggered some more JPY decline. But I do believe these kind of assassination would probably not happen that much, and we are more likely to see Japan become more hawkish as "Abeconomics" has officially be eliminated.

Besides that, from a historical point of view on the chart we are very likely to see resistance incoming. Back in June the Japan National Bank declared "they would cautiously watch USDJPY level to ensure economic stability." If we are seeing Japanese companies earning decline in the upcoming earning season + rising CPI(which has exceeded 2% for a few months already), I doubt they could keep the ultra-loose policy.