Market Fundamental Analysis by RoboForex

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Elections revive demand for the yen as USDJPY reverses sharply lower

The USDJPY pair has retreated sharply from local highs amid dollar weakness and renewed demand for the Japanese yen as a safe-haven asset. The rate currently stands at 157.62. 

USDJPY forecast: key takeaways

• Political uncertainty in the US has boosted demand for the yen as a safe-haven asset and weighed on the dollar
• The Bank of Japan held its interest rate steady at 1.25%, but core inflation reaching the 2% target supports the possibility of another hike as early as December
• USDJPY forecast for 4 November 2026: 156.82

Fundamental analysis

The USDJPY rate approached 157.50 on Wednesday. Pressure on the pair intensified following a decline in the US dollar amid the first results of the US midterm elections and growing political uncertainty.

Demand for safe-haven assets is providing additional support for the yen. A sell-off in the technology sector and companies linked to artificial intelligence has heightened market caution.

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Edited 1 hour ago by RBFX Support