USDJPY rally: yen avoids risk
The USDJPY pair surged to 148.80, with political imbalance weighing on the yen outlook. Find out more in our analysis for 3 September 2025.
USDJPY forecast: key trading points
The USDJPY pair is rising rapidly
The market is monitoring political issues and pricing in these risks
USDJPY forecast for 3 September 2025: 148.90
Fundamental analysis
The USDJPY rate climbed to 148.80 midweek. The yen reached a one-month low amid political uncertainty in Japan.
Hiroshi Moriyama, secretary of the ruling party and close ally of Prime Minister Shigeru Ishiba, announced his resignation. This fueled speculation about Ishiba’s potential departure, with pressure mounting after his election defeat. Among possible successors is Sanae Takaichi, known for her support of low interest rates.
Meanwhile, Bank of Japan Deputy Governor Ryozo Himino emphasised on Tuesday that the central bank will continue to raise rates gradually but noted the persistence of elevated global risks. This signals no urgency in tightening policy.
Investors now await fresh wage data, which should provide additional signals on the future course of monetary policy.
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