The Japanese Yen has dropped by 0.2% against the US Dollar, falling behind most G10 currencies, including the Australian and New Zealand Dollars. There are few domestic news releases and steady yield spreads, providing no strong market influences. Recent CFTC data shows a steady decline in bullish JPY positions, which have been falling since April. The upcoming Q2 GDP and industrial production data could pose near-term risks for the Yen.

Investment Advisory

Forward-looking statements involve risks and uncertainties and should not be interpreted as buy or sell recommendations. It’s important to do thorough research before making investment decisions, as investing carries risks, including the potential total loss of principal and emotional stress. This article is for general informational purposes and should not be viewed as personal advice. The author and source are not liable for any inaccuracies, omissions, or losses related to the information. They also do not take responsibility for the content of external links, nor can they guarantee the timeliness or accuracy of the data provided. The Japanese Yen is weakening against the US Dollar and is trailing behind most major currencies. There are no substantial local events or changes in bond yields driving this trend, indicating that the market’s movement is more about global trends than local factors.

Market Sentiment

Recent data reveals that Japan’s national Core CPI for July 2025 was 2.1%, which is slightly lower than expected. This leaves the Bank of Japan with little reason to shift from its loose monetary policy. Last week, the central bank’s governor emphasized the need for patience, reinforcing this cautious approach. Trader positioning shows a consistent decline in bets for a stronger Yen since April of this year, suggesting that major speculators believe the currency will continue to drop. This sentiment is mainly driven by the large interest rate gap between the United States and Japan. Create your live VT Markets account and start trading now.

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