USD/JPY: Yen to suffer further weakness in the short term – Nordea

The Yen has gone from bad to worse with USD/JPY trading around 150. Economists at Nordea analyze the pair’s outlook.

BoJ continues to disappoint

The government’s verbal intervention threats have curbed the fall of the JPY but are not sufficient to turn JPY fortunes. Even with a high likelihood of intervention, we see further Yen weakening in the short term. 

We still expect that a reversal is in the cards longer term – that is more likely to occur when major central banks turn dovish rather than the BoJ turning hawkish.

USD/JPY – 3M 150 Mid-2024 145 End-2024 140 Mid-2025 130