The dollar’s own vulnerabilities this week is also contributing to the drop in the pair but so far in trading today, it is more about the Japanese yen. The pair is now down to 140.87 with the yen up 0.7% against the dollar. Other major currencies are not doing a whole lot in comparison for the most part.

The drop here sees USD/JPY now at its lowest since the end of July and may look towards a test of 140.00 as sellers exert further control.

As for the outlook going into next year, I shared some thoughts earlier this week: The Japanese yen is an early contender for the most interesting major currency in 2024

This article was written by Justin Low at www.forexlive.com.