Yen weakness persisted as comments from Japan’s officials reinforced the view of supporting growth through lower interest rates outweighs concerns about further Yen depreciation.
Economic Revitalization Minister Minoru Kiuchi acknowledged today that a weaker Yen can push up prices prices. However, he also emphasized that “import prices in Yen terms have been falling for eight consecutive months.” The latest BoJ Corporate Goods Price Index showed that annual import price inflation has been negative throughout 2025, except in January. This underlines Kiuchi’s message that the government remains broadly comfortable with current exchange rate trends.
Taken together with recent comments from other officials, Tokyo’s stance appears tolerant of moderate Yen weakness. As long as the moves are not disorderly, authorities seem focused on broader economic stability rather than exchange-rate management.
The stance reflects clear priorities under new Prime Minister Sanae Takaichi, whose administration has emphasized growth and fiscal stimulus over premature monetary tightening. Her economic package leaves little ambiguity as she called it “extremely important” for monetary policy to focus on achieving strong economic growth
Takaichi also explicitly urged the BoJ to reach 2% inflation sustainably through wage gains, not cost-push effects. Her stance effectively discourages early tightening, highlighting that policy coordination now leans toward growth-first rather than currency defense.
This political backdrop makes it increasingly unlikely that Governor Kazuo Ueda will push for a rate hike at the December meeting. While BoJ board members have indicated readiness to tighten if inflation stays resilient, the growing government influence implies that any move may be delayed until early 2026—and that the pace of normalization will remain slow thereafter.
Technically, CHF/JPY’s rebound suggests that the pullback from 192.67 has completed at 189.07. Decisive break above 192.67 would resume the long term uptrend, targeting 100% projection of 173.06 to 186.02 from 183.95 at 196.91.
On the downside, however, firm break of 189.07 support would risk completing a head-and-shoulders top, signaling the end of the five-wave rally from 165.83.
