Japan’s FM Suzuki: FX rates determined by various factors, not just monetary policies | Forexlive

Japan’s finance minister Suzuki is speaking and says:

• FX rate determined by various factors
• Not just monetary policies and interest-rate differentials
• Also by geopolitical risks, market sentiment and others.
• Hard to tell how those factors would impact FX rates
• Will monitor how changes in US monetary policies would affect through various channel

US Federal Reserve Chairman Powell signaled that it is time to start to cut rates. Meanwhile , the Bank of Japan has started to tighten rates. That should weaken the USDJPY (strengthen the JPY), but as Suzuki says, it may not be so one way.

Looking at the daily chart of the USDJPY, the pair has retraced 50% of the move up from the January 2023 low. That level comes in at 144.58.The current price is trading just above that level at 144.68.