The Japanese Yen continued to trade close to multi-decade lows against the US Dollar, with the USD/JPY pair reaching levels not seen since 1986. On Thursday, the currency pair hit a fresh near 40-year high, reflecting sustained pressure on the yen.
According to FX Street, USD/JPY was around 163.70 on Friday, slightly down by 0.09% after the recent peak. Scotiabank strategists highlighted that the pair is trading near resistance levels last observed in 1986, noting limited resistance overhead, which could suggest further room for the dollar’s advance against the yen.
This movement underscores ongoing challenges for the Japanese currency amid global market dynamics, with implications for Japanese exporters and investors watching FX trends closely. The yen’s weakness continues to influence Japan’s trade balance and monetary policy considerations.