The USD/JPY exchange rate is influenced by several factors, including:
- The monetary policies of the Federal Reserve and the Bank of Japan
- Economic indicators (for example, GDP growth and employment rates)
- Geopolitical tensions
- Trade balances
- Investors’ sentiment towards risk
Additionally, fluctuations in global commodity prices (particularly oil), and the overall health of the global economy also play a significant role in shaping the exchange rate between the US dollar and the Japanese yen.