The analysts of Rabobank share their short-term outlook for the USD/JPY pair following the latest developments.
USD/JPY to trade at lower levels by the end of the year
“Although a break of the 152.00 level would not trigger immediate intervention in the FX market, we see a high chance that the MoF will act to prevent a move towards 155.00 in the USD/JPY. Strong US inflation data and weak Japanese economic figures would increase the risk of MoF intervention. Strong US inflation data and weak Japanese economic figures would increase the risk that the MoF would be forced to act.”
“Assuming the Bank of Japan (BoJ) is able to announce a second rate hike later this year and with the expectation that the Fed will cut rates in 2024, we expect USD/JPY to trade at lower levels.” at the end of the year. However, we have raised our 1 and 3 month forecasts to 150.00 and 148.00 respectively, from 148.00 and 146.00.”
Source: Fx Street
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