{"id":19295,"date":"2025-03-26T06:31:32","date_gmt":"2025-03-26T06:31:32","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=19295"},"modified":"2025-03-26T06:31:32","modified_gmt":"2025-03-26T06:31:32","slug":"ninja-rises-despite-concern-over-yen-mispricing","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/ninja-rises-despite-concern-over-yen-mispricing\/","title":{"rendered":"Ninja Rises Despite Concern Over Yen Mispricing"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image_fx_-2025-03-26T142626.457-1024x559.png\" alt=\"\" class=\"wp-image-19297\"\/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD\/JPY rises to 150.58 as traders digest solid U.S. data and tariff clarity.<\/li>\n\n\n\n<li>Japan\u2019s ruling party says the yen\u2019s real value should lie closer to 120\u2013130.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>The <strong>yen slipped past 150 per dollar<\/strong> again this week, with <strong>USD\/JPY trading at 150.58<\/strong> in Wednesday\u2019s session, following a high of <strong>150.623<\/strong>. The move underscores the pressure on the Japanese currency, even as <strong>senior lawmakers voice <\/strong><strong>concerns over a disconnect<\/strong><strong> between the yen\u2019s current level and its real economic value<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Japan PM Ishiba to adopt &#39;strong measures to counter rising prices&#39;, coalition partner says <a href=\"https:\/\/t.co\/3re8y33FqJ\">https:\/\/t.co\/3re8y33FqJ<\/a> <a href=\"https:\/\/t.co\/XUmKeOTL5N\">pic.twitter.com\/XUmKeOTL5N<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1904464570145718272?ref_src=twsrc%5Etfw\">March 25, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><strong>Satsuki Katayama<\/strong>, who heads the <strong>Liberal Democratic Party\u2019s finance and banking systems commission<\/strong>, told Reuters that the yen\u2019s <strong><a href=\"https:\/\/www.reuters.com\/markets\/currencies\/japan-lawmaker-says-yen-undervalued-eyes-steps-reverse-outflows-2025-03-26\/\" target=\"_blank\" rel=\"noopener\" title=\"\">&#8220;true&#8221; value is likely between 120 and 130 per dollar<\/a><\/strong>, citing <strong>Japan\u2019s economic fundamentals<\/strong>. Though she avoided stating an exact target level, her remarks reflect <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-03-19\/boj-holds-rate-steady-as-officials-monitor-rising-global-risks\" target=\"_blank\" rel=\"noopener\" title=\"\">growing domestic unease<\/a><\/strong> as the yen remains trapped near <strong>multi-decade lows<\/strong>.<\/p>\n\n\n\n<p>The recent dollar strength stems from <strong>solid U.S. economic data<\/strong>, including a rebound in business activity, and <strong>market optimism over a <a href=\"https:\/\/t.co\/1HKfi2ya3l\" target=\"_blank\" rel=\"noopener\" title=\"\">more restrained approach<\/a> to U.S. trade tariffs<\/strong>. This has reinforced the view that the <strong>Federal Reserve will keep rates higher for longer<\/strong>, widening the yield gap between the U.S. and Japan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Structural Reform, Not Intervention<\/h2>\n\n\n\n<p>Katayama acknowledged that while <strong>currency interventions can temporarily jolt markets<\/strong>, their impact is limited. Instead, the LDP plans to tackle the <strong>capital outflow problem structurally<\/strong>. A key proposal involves <strong>expanding the <a href=\"https:\/\/www.asiaasset.com\/post\/29261-japan-fund-250203\" target=\"_blank\" rel=\"noopener\" title=\"\">Nippon Individual Savings Account (NISA)<\/a> programme<\/strong> to incentivise investment in <strong>domestic equities<\/strong>, particularly among older generations.<\/p>\n\n\n\n<p>One proposed measure would <strong>exempt inherited long-held domestic stocks from inheritance tax<\/strong>, making Japanese equities more attractive and potentially <strong>diverting funds away from high-yielding foreign assets<\/strong>. The aim is to <strong>stem the outflow of household capital<\/strong> that has contributed to persistent yen weakness.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The USDJPY chart shows a positive trend with the pair recently breaking through key resistance levels around 150.00. The price action indicates a strong upward move, pushing above the 150.500 zone. The MACD has crossed above the signal line, and the histogram is showing increasing bullish momentum, reinforcing the case for further upside potential. The moving averages are also aligned in a bullish formation, with the price staying above the 50-period and 100-period moving averages, suggesting continued strength.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-31-1024x441.jpg\" alt=\"\" class=\"wp-image-19296\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDJPY rallies past 150.00, testing key resistance at 150.580, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>However, with price approaching the 150.580 resistance level, it may face some pushback before gaining further momentum. A break above this level could signal an extension of the bullish trend.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Yen Risks Persist Without Policy Shift<\/h2>\n\n\n\n<p>Until the <strong><a href=\"https:\/\/t.co\/KaVADBxcP7\" target=\"_blank\" rel=\"noopener\" title=\"\">Bank of Japan signals a more aggressive tightening path<\/a><\/strong>, or <strong>U.S. rate expectations ease<\/strong>, the <strong>yen is likely to remain under pressure<\/strong>. While LDP\u2019s structural proposals may bolster the currency longer-term, <strong><a href=\"https:\/\/www.reuters.com\/markets\/asia\/southeast-asian-stocks-feel-heat-economic-us-tariff-worries-2025-03-25\/\" target=\"_blank\" rel=\"noopener\" title=\"\">FX markets remain sensitive<\/a> to interest rate differentials<\/strong> and cross-border trade positioning.<\/p>\n\n\n\n<p><strong>USD\/JPY could stay in a 149.90\u2013151.00 range short-term<\/strong>, with upward bias intact unless fresh catalysts emerge to reverse capital flow trends.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>USD\/JPY climbs to 150.58 as U.S. data bolsters dollar. Japan\u2019s LDP eyes structural fixes amid real yen valuation concerns. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":7,"featured_media":19297,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[9,10,45],"class_list":["post-19295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar","tag-forex","tag-yen"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=19295"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/19297"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=19295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=19295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=19295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}