USD/JPY is up another 0.6% today at 141.15 at the moment, but it’s not the best indicator of how the Japanese Yen is breaking down, especially in the latter stages of this week. The squeeze started yesterday and is now gathering pace as we see it fall to multi-year lows against European currencies alone. EUR/JPY is up more than 3% this week alone to its highest levels since 2008:
EUR/JPY monthly chart
Adding to the yen’s woes are the likes of GBP/JPY, which is also up 3% this week to 180.60 – its highest level since 2015. And also CHF/JPY, which is also up nearly 3% to 158.40 at the moment – to fight for new record highs.
BOJ Governor Ueda has failed to convince on any potential key policy point, leaving yen bulls rather frustrated since he took over in April. This may be a major signal that markets are throwing in the towel in anticipation of any imminent policy changes from the BOJ in the coming months.