Weak Yen: What it Means for Forex Traders and Japan's Economy

• Japan's yen has lost its safe-haven status, with its value drastically sliding despite the country being the fourth-largest economy.
• Prime Minister Sanae Takaichi's landslide victory empowers her to implement changes, but her initial actions have been criticized for not bringing significant change.
• The USD/JPY pairing, traditionally stable, is now volatile due to drops in both currencies' values, currently at 153.58 after a four-day losing streak.
• Finance Minister Satsuki Katayama indicates authorities are monitoring foreign exchange movements and are prepared to act against yen weakness.
• A weak yen fuels inflation in Japan and encourages carry trades, where the yen is borrowed to acquire higher-yielding currencies.