Japanese Yen Remains Weak as Policy Uncertainty Weighs
  • Market Insights   >   Daily Market Analysis New

Japanese Yen Remains Weak as Policy Uncertainty Weighs

Published: 11 November 2025,03:23

Published: 11 November 2025,03:23

Daily Market Analysis New

Tags:

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

Key Takeaways:

*The Japanese yen continues to underperform against major currencies, even as GBP/USD trends lower — highlighting yen-specific weakness.

*Bank of Japan’s cautious tone and uncertainty under the new Prime Minister Sanae Takaichi dampen expectations of imminent policy tightening.

*Subdued GDP growth and planned fiscal stimulus reinforce expectations that monetary policy will stay accommodative in the near term.

Market Summary:

The Japanese yen extended its weakness against major peers, including the U.S. dollar and British pound. While GBP/USD continues to trend lower, GBP/JPY has strengthened, underscoring persistent yen underperformance across the board.

Market participants remain uncertain about the Bank of Japan’s monetary policy outlook following cautious remarks from board member Junko Nakagawa, who emphasized that the BoJ would act carefully before raising rates due to ongoing global trade uncertainties. This cautious stance, combined with expectations of a $65 billion economic stimulus plan proposed by newly appointed Prime Minister Sanae Takaichi, suggests continued accommodative policy bias.

Japan’s latest GDP data added to the bearish sentiment, expanding only 1.8% YoY in September, below market expectations of 2.5%. The slowdown was largely driven by technical factors such as the reversal of front-loaded exports to the U.S. ahead of new tariffs, a slump in housing construction following stricter building standards in April, and inventory adjustments after strong first-half accumulation.

Business investment also softened, as weaker capital goods demand was only partially offset by steady spending on software and construction. Meanwhile, housing investment plunged sharply following the pre-regulation construction rush earlier this year. Overall, these developments reinforce expectations that Japan’s recovery remains fragile, limiting the BoJ’s room for near-term tightening.

Technical Analysis

USD/JPY, H4: 

USD/JPY is trading higher after rebounding strongly from the 153.15 support level. The pair is showing a classic breakout–retest–rebound formation, with bullish momentum strengthening.

The MACD indicator highlights increasing bullish momentum, while the RSI at 62 remains comfortably above the midline, suggesting continued upward bias. If the bullish trend persists, the pair could extend gains toward the next resistance level at 156.00. However, failure to sustain buying momentum may lead to a retracement toward 153.15 support.


Resistance Levels: 156.00, 158.60
Support Levels: 153.15, 149.70

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

  • Start trading with deposits as low as $50 on our standard accounts.
  • Get access to 24/7 support.
  • Access hundreds of instruments, free educational tools, and some of the best promotions around.
Join Now

Latest Posts

Fast And Easy Account Opening

Create account
  • 1

    Register

    Sign up for a PU Prime Live Account with our hassle-free process.

  • 2

    Fund

    Effortlessly fund your account with a wide range of channels and accepted currencies.

  • 3

    Start Trading

    Access hundreds of instruments under market-leading trading conditions.

Important Notice to Visitors

Our products and services are not offered or made available to residents of your jurisdiction. The information on this Website is not directed at persons in your jurisdiction and is not intended as an offer, solicitation, or promotion of our products or services to them.

By clicking “I Understand”, you acknowledge this notice and confirm that you are accessing this Website at your own initiative. Access to this Website does not mean that our products or services are available to you.

Important Notice

Please be advised that our products and services are currently unavailable to residents and entities located in the Philippines.

This restriction is a result of our firm commitment to adhering to applicable legal and regulatory requirements in all jurisdictions where we operate. In line with our internal compliance protocols and evolving global standards, we continuously assess and update access to our platform to ensure full regulatory alignment.

We appreciate your understanding and cooperation.

If you believe this restriction has been applied in error, please contact our support team for further assistance.

Important Notice:

Important Notice: Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely on your own initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on a reverse solicitation basis in accordance with the laws of your home jurisdiction.

Important Notice:

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Aviso importante:

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.