The USD/JPY exchange rate, which has a high correlation with long-term U.S. Treasuries, is what to watch next.
The USD/JPY exchange rate7has approached the 150 yen level since the Urata shock at the end of month150. This year, factors on the Japanese side such as the Ministry of Finance’s yen-buying interventions and the Ishiba shock have made the USD/JPY seem more prone to movement, but in reality there appears to be a strong correlation with the U.S. long-term interest rate. By examining past trends, we consider scenarios in which the USD/JPY would160recover to 160 yen.
× ![]()