USD/JPY: To remain on the back foot in the coming weeks – Rabobank

July 8, 2024 12:53 pm

USD/JPY has moved from around 140 to 160 in the year to date. We see USD/JPY as holding around the 160 level on a 1 month view with USD/JPY easing back to 152 by year-end, Rabpbank FX analysts note.

USD/JPY to hold close to 160 in the coming weeks

“Broadly speaking USD/JPY has moved from around 140 to 160 in the year to date. Having reached a high last week close to JPY161.95, the currency pair has edged a touch lower, though this move is largely related to the weaker US Dollar (USD) than to a broad-based pick up in the value of the Japanese Yen (JPY).”

“On balance, we see USD/JPY as holding around the 160 level on a 1 month view with USD/JPY easing back to 152 by year-end on the view that real wages will by then also be showing signs of improvement.”

“The US Dollar (USD) could remain on the back foot in the coming weeks allowing USD/JPY to hold close to 160. Later in the year, we are looking for the JPY to win back some ground based on the assumption that a recovery in Japanese real wages will allow for a more hawkish BoJ.”

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