USD/JPY set to reach 150 as yen weakness lingers – ANZ
The Japanese yen tumbled to a low of 145.90 against the US dollar. In response, the Ministry of Finance intervened. However, economists at ANZ Bank the yen is set to suffer further weakness, leading the USD/JPY pair towards 150.
The likelihood of further intervention is low
“The MoF intervened for the first time in two decades. In our view, the move may help to stabilise JPY in the short term, but will not prevent further yen weakness.”
“The recent MoF intervention seems to be triggered by the pace of yen weakening rather than policymakers targetting specific levels in the currency. Therefore, as long as the yen weakens gradually, and in an orderly fashion, the likelihood of further intervention is low in our view.”
“We expect USD/JPY weakness to peak at 150 as the differential between USD and JPY yields continue to widen while the US Fed continues its aggressive hiking path and BoJ stands pat.”
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FXStreet Insights Team
FXStreet
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