USDJPY: Will the Fed's rate cut really hurt the USD/JPY pair?

The potential impact of a US Federal Reserve rate cut on USD/JPY is a key issue for investors and currency strategists, especially as we approach a potential Fed policy change in 2024.

With the divergent monetary policies of the Fed and the Bank of Japan (BoJ), market participants are divided on whether a Fed rate cut will lead to a weaker USD/JPY.