CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Japanese Yen Outlook: USD/JPY Edging Towards YTD Peak on BoJ Dove and US Yields

By Justin Mcqueen

14:36, 6 February 2023

Japanese Yen Outlook
Japanese Yen Outlook - Photo: Source: GettyImages

Overnight reports that Japan has reportedly sounded out BoJ Deputy Governor Amamiya for BoJ Governor have seen the Japanese Yen underperform in the G10 space with USD/JPY firmly back above 132.00. The reason being is the fact that Amamiya is seen as the most dovish candidate comparatively speaking. However, with inflation data likely to force the BoJ into eventually normalising policy the impact of a continuity candidate is more on the timing of when normalisation takes place. As such, while this opens a window for JPY weakness, particularly with US yields picking up again, the direction of travel remains tilted to policy normalisation and thus JPY weakness likely be faded. Prior to that, however, there is a risk for USD/JPY edging higher towards its year-to-date peak at 134.77.

USD/JPY Chart: 5-Minute Chart

USD/JPY 5-minute ChartUSD/JPY 5-minute Chart - Photo: Source: Tradingview

That being said, there does appear to be some confusion over Japanese press reports touting Deputy Governor Amamiya as the next Governor given the pushback from Japanese Officials. Firstly, the Deputy Chief Cabinet Secretary, Isozaki, stated that the article is not true, the Finance Minister noted that there has not been a word yet on BoJ admonition, although, did point out that he has been out of the loop and finally, PM Kishida called the media report a trial balloon. Nonetheless, while headline risk will be elevated, it does appear that the Amamiya remains the favourite and thus confirmation could prompt another leg higher in USD/JPY.


28,117.45 Price
-0.280% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00

Natural Gas

2.13 Price
+0.470% 1D Chg, %
Long position overnight fee -0.4441%
Short position overnight fee 0.4222%
Overnight fee time 21:00 (UTC)
Spread 0.005


12,973.70 Price
+0.040% 1D Chg, %
Long position overnight fee -0.0249%
Short position overnight fee 0.0027%
Overnight fee time 21:00 (UTC)
Spread 1.8


1,984.19 Price
+0.110% 1D Chg, %
Long position overnight fee -0.0180%
Short position overnight fee 0.0098%
Overnight fee time 21:00 (UTC)
Spread 0.30

USD/JPY Chart: Daily Time Frame

USD/JPY daily chartUSD/JPY daily chart - Photo: Source: Tradingview

Rising US Yields Places Upside Pressure on USD/JPY

USD/JPY vs US 10Y YieldUSD/JPY vs US 10Y Yield - Photo: Source: Tradingview

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Forex news

Still looking for a broker you can trust?

Join the 500.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading