USD/JPY Declines Amidst Falling Interest Rate Expectations
The USD/JPY pair has continued its downward trend, with the US Dollar weakening due to growing expectations of lower interest rates. The Federal Reserve's shift towards a more dovish monetary policy stance, coupled with the ongoing decline in US Treasury yields, has made the US Dollar less attractive.
The Japanese Yen, on the other hand, has gained strength, supported by the Bank of Japan's ongoing efforts to maintain ultra-low interest rates. While the BoJ is expected to implement one more rate hike before the end of the year, the overall trend remains towards a more accommodative monetary policy.
USD/JPY Technical Outlook
The USD/JPY pair is currently trading below a key support level, indicating a potential for further declines. A break below the 144.00 level could signal a continuation of the downward trend.