Tuesday, 24 February 2026
📉 USDJPY battling key 155.89 resistance amidst surging JGB yields! 🇯🇵 Central bank stands hawkish, but US differentials dominate. Watch the pivotal Tankan Index release for corporate capex sentiment. High volatility expected—trade carefully! 🚀💴📊
The macroeconomic landscape is currently defined by a massive, highly volatile structural collision between aggressive governmental fiscal expansion and historic central bank monetary tightening. Under Prime Minister Takaichi, the government has unleashed immense stimulus and record defense spending, heavily attempting to insulate the domestic economy from severe global headwinds and US tariffs. Simultaneously, the central bank has officially ended its zero-interest-rate legacy, hiking rates to 0.75 percent to combat structurally entrenched, wage-driven inflation. This profound policy divergence has completely shattered the domestic bond market, pushing 10-year yields to multi-year highs, while the Nikkei 225 equity index absolutely surges on record corporate profits. However, the JPY remains highly vulnerable, aggressively battered by massive US interest rate differentials and relentless carry-trade outflows. For forex traders, mastering this incredibly complex interplay between domestic wage pressures, central bank hawkishness, and global yield gaps is absolutely essential for navigating the extreme structural volatility ahead.
