USD/JPY: Downward trend to start in 2023 – MUFG

FX

USD/JPY remains top-heavy just below 145. Economists at MUFG Bank expect the pair to remain supported for now. The yen is set to star its recovery next year.

Dynamics driving yen weaker will ease in 2023

“It is hard to see a turn in USD/JPY now even after intervention by the MoF.”

“The Fed and global central banks have more tightening to do while the BoJ does nothing but ease. But we suspect the Fed should be in a position to pause after December’s hike while the terms of trade shock for Japan should subside next year and could coincide with a shift of some sort by the BoJ – all factors that will help the yen recover.”

Articles You May Like

Sterling Holds Firm on Strong Wages Growth, GBP/CHF Upside Breakout
Dollar to Pause for Consolidation After Failing to Break Euro Resistance Post-Fed
UK Q3 final GDP +0.0% vs +0.1% q/q prelim
GBPUSD breaks higher. The next key target area between 1.2596 and 1.26147
Oil steady as markets weigh Fed rate cut expectations, Chinese demand

Leave a Reply

Your email address will not be published. Required fields are marked *