The economists of ING analyze the outlook for USD/JPY for next year.
Big political changes in Japan could have a big impact on USD/JPY
Regarding carry, lower volatility favors the carry trade and also the yen as a financing currency. However, we have some pretty aggressive forecasts for a lower USD/JPY due to a weaker Dollar and eventually a proper exit from the Bank of Japan from its ultra-loose policy.
Big policy changes in Japan can have a big impact on USD/JPY like in 2013. Let’s see how the start of 2024 progresses and if the BoJ is prepared to make its move after all.
USD/JPY: Expected at 148.00 in the fourth quarter of 2023. For the first quarter of 2024, 140.00. The second quarter of 2024 will point to 135.00 while the third will go down to 130.00. The last quarter of next year will end in 130.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
