USD/JPY PRICE ANNUAL FORECAST: TRADERS SET FOR ROCKY 2025 ON REDIVERGING INTEREST RATES, TRUMP AND NORTH KOREA
The USD/JPY pair moved over 2,200 pips, influenced by diverging central bank policies between the US and Japan.
The Fed may pause its rate-cut cycle in 2025, continuing to drive the USD/JPY pair.
The Bank of Japan is likely to avoid significant rate hikes, maintaining low interest rates.
Political factors, including Trump’s policies and North Korea’s actions, are expected to increase volatility in the USD/JPY pair in 2025.
Continued divergence in interest rates between the US and Japan will likely drive further fluctuations in the currency pair.
In 2024, Japan ended its negative interest rate policy and raised rates to 0%, a significant policy shift in response to inflation.
