Fluctuation in the yen will be the theme of the foreign exchange market in 2024

Sina Financial News As foreign exchange traders will treat all monetary policy meetings of the Central Bank of Japan as real-time meetings, the implied Volatility of USDJPY appears to be cyclically widening compared to EURUSD and other G10 currency pairs. Although the governor of the Central Bank of Japan tried to drop expectations for a policy adjustment in January, foreign exchange investors still see the risk of surprises. Especially in the first few meetings of 2024, USD/JPY Fluctuation is likely to be significantly higher than other currency pairs. In fact, Fluctuation may diminish after the Central Bank exits negative Intrerest Rates, which may be a case of buying news and selling facts. Investors will not expect the Central Bank of Japan to raise interest rates as quickly as the Fed. More likely, short-term Intrerest rates turn to zero and then stagnate for a long time.