USDJPY Fundamental Analysis
Bloomberg—The Japanese yen stayed firm near 156 per dollar on Wednesday, holding at its highest level in a week. This strength came mainly from a weaker US dollar, as traders increased their expectations for a possible US Federal Reserve rate cut in December.
These expectations grew after new US data showed a slowdown in consumer spending, and reports hinted that a more dovish candidate may be considered for the next Fed chair.
At the same time, the yen gained extra support from rising talk that Japanese officials might step into the currency market. With the US Thanksgiving holiday on Thursday, some believe this could give Tokyo a chance to act.
On Sunday, Takuji Aida, an adviser to Prime Minister Sanae Takaichi, said the government is ready to intervene if needed to ease the negative impact of a weak yen. His comments matched recent statements from Bank of Japan Governor Kazuo Ueda and Finance Minister Satsuki Katayama.