USD/JPY: BoJ’s incremental steps toward policy normalization should support a recovery in the Yen – UBS

FXStreet Insights Team FXStreet

The strength in the Dollar pushed USD/JPY back above 150.00. Economists at UBS analyze Yen’s (JPY) outlook.

The current entry point to buy the Yen is attractive

We think the BoJ's policy normalization remains on track this year on strong wage hike negotiations and corporate profitability.

We maintain the view that the Japanese Yen has likely reached a turning point after significant underperformance between 2021 and 2023.

With the US-Japan 10-year yield differentials expected to narrow as the year progresses, we think the current entry point to buy the Yen is attractive.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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