Analyst: Yen Outlook Under Pressure as Bank of Japan Likely to Remain on Hold

According to ChainCatcher, Nick Twidale, Chief Market Analyst at ATFX Global Markets, stated that uncertainty may ultimately be bearish for the yen. Although there has been some safe-haven buying, the outcome met expectations and triggered a pullback. The greater risk lies in subsequent developments, as equities are likely to be sold off due to uncertainty.

If Japanese Prime Minister Shigeru Ishiba eventually steps down, the yen could weaken further. In the short term, the Bank of Japan is expected to remain in a wait-and-see mode and continue monitoring data until the future policy direction becomes clear.