JPY Weekly

The USD/JPY pair is testing the 160 level as Japan considers a JPY 3 trillion supplementary budget and the US transitions to a new Fed Chair, Kevin Warsh, amid global inflation concerns.

Key Takeaways

• 1.USD/JPY is facing upward pressure toward the 160 level due to Japanese fiscal concerns and rising long-term yields.
• 2.The Japanese government is considering a JPY 3 trillion supplementary budget, which has put upward pressure on JGB yields.
• 3.US monetary policy remains volatile as Kevin Warsh takes over as Fed Chair amid toned-down rate cut demands from President Trump.

Table of Contents

• Week in review
• President Trump tones down calls for rate cuts
• Fiscal concerns in focus as supplementary budget considered
• Treasury Secretary Bessent urges BOJ rate hikes
• It all comes down to Governor Ueda

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