USD/JPY: Yen can become a significant outperformer during the global easing phase – Wells Fargo
|Economists at Wells Fargo expect the Yen to be a key beneficiary from US Dollar weakness.
Japanese Yen strength later this year
Against a backdrop of aggressive global monetary tightening, the Yen has underperformed so far in 2023. However, our expectation for the Bank of Japan to adjust its policy settings in Q4-2023 to further normalize the government bond market leads us to believe the Japanese currency has scope to outperform later this year.
Yen strength should also be supported by the end of global central bank tightening cycles and a transition toward global easing, as well as a US recession in the second half of 2023.
We target a USD/JPY exchange rate 136.00 by end 2023, and 129.00 by late 2024.
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.