By Vassilis Karamanis, Bloomberg FX reporter and strategist
This could be a defining week for the yen. The macro and geopolitical backdrop is supportive of yen strength — at least on paper. But if the currency fails to gain traction here, the bearish dollar-yen narrative that’s persisted all year may face a serious credibility test.
Technically, USD/JPY remains on a long-term downtrend, but cracks are forming. Daily charts show hesitation, and the broader market is circling a clear inflection point. Between central bank meetings, key data from the US and Japan, and ongoing geopolitical risks, the stage is set for the yen. But a supportive setup isn’t the same as a true catalyst.
