USD/JPY Drops Below 144 as US Dollar Weakens on Rate Cut Hopes
The US Dollar (USD) continues to fall, and now the USD/JPY pair has moved below 144.00. This drop is happening as traders believe the Federal Reserve might cut interest rates soon. Positive news about US trade deals with countries like China and Canada is also adding pressure on the dollar.
There’s also talk that former President Trump might replace Fed Chair Jerome Powell with someone more likely to support rate cuts. This has made the dollar even weaker in the market.
On the other hand, the Japanese Yen (JPY) is getting stronger as investors look for safer options. Even though the Bank of Japan (BoJ) is keeping its policy soft, the falling US Dollar is helping the Yen rise.
Traders are now watching for upcoming US inflation data (Core PCE) and more updates from the Fed. These reports could bring big moves for USD/JPY in the coming days.
On the chart, if the pair stays below 144.00, the next support could be around 143.50. If it moves back above 144.50, buyers may return.
Impact:
USD/JPY might keep falling if the US Dollar stays weak. But strong US data or hawkish Fed talk could push the pair back up.