In today's trading, the USD/JPY currency pair showed significant movement. After strengthening to a two-month high above 148.00 on Friday, August 22, 2025, USD/JPY experienced a sharp decline as the US dollar weakened following Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium. Powell's dovish remarks, indicating a possible interest rate cut at the September meeting, put pressure on the US dollar, while the Japanese yen remained under pressure from less than encouraging domestic economic data.

Previously, USD/JPY reached an intraday high of 147.60 on August 21, 2025, driven by market expectations regarding the Fed's monetary policy and relatively strong US economic data. However, following Powell's speech, the US dollar experienced a sharp decline, giving the yen room to strengthen even though Japanese inflation data showed a slight decline in July 2025. Nevertheless, the yen remained under pressure due to the decline in Japanese exports, which was recorded for the third consecutive month in July 2025.

External factors, such as President Trump's tariff policies, also influenced the movement of the USD/JPY. Aggressive tariff policies could increase global economic uncertainty, which in turn could affect market sentiment towards major currencies, including the Japanese yen.

Overall, today's USD/JPY movement was influenced by a combination of domestic and external factors. Investors are advised to continue monitoring developments in US and Japanese monetary policy, as well as global trade dynamics, to understand the future direction of this currency pair.

Source: Newsmaker.id