USD/JPY to plunge toward 127 by year-end – Wells Fargo
|While the Yen underperformed during the global monetary tightening phase, in the view of economists at Wells Fargo, the JPY will likely outperform as tightening cycles eventually come to an end and central banks turn to easing.
Japanese Yen strength over time
“We believe the Japanese Yen can experience a strong rebound as bond yields, especially in the United States, eventually come down, and less negative yield spreads support the Japanese currency.”
“During the global tightening phase in which Japan maintained its easy monetary policy stance, the yen came under significant downside pressure. On the flip side, as the global monetary policy cycle turns to easing, we expect the Yen to be a key beneficiary and target a USD/JPY exchange rate of 127.00 by the end of this year.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.