The Japanese Yen (JPY) has experienced a notable decline against the US Dollar (USD) since the start of the year. Analysts at Commerzbank are examining the outlook for USD/JPY.

The Yen’s depreciation is attributed, in part, to a stronger Dollar, but skepticism surrounding Japanese monetary policy has also been a contributing factor.

In the current month, USD/JPY has seen an upward movement. While the robust performance of the Dollar may have influenced this trend, doubts regarding the direction of Japanese monetary policy likely played a significant role.

If the Bank of Japan (BoJ) communicates next week that it has no immediate plans to deviate from its expansionary stance – an outcome deemed likely by analysts – USD/JPY could experience further gains in the near term.