Usdjpy To Close This Year In Red

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Usdjpy To Close This Year In Red

Usd/Jpy To Close 2024 At 140.00 Level - Ing

The USD/JPY staged a rally after the BoJ announcement that negative rates would be ending. On the surface, the USD/JPY should have gone down as BoJ ended the negative rates after more than a decade.

However, experts believe that the upside in the USD/JPY was driven by the rate differential between the two central banks. Now that the BoJ has also moved into positive territory, the ING economists have also shared their forecasts.

Usd/Jpy To Turn Negative This Year

For now, the USD/JPY is trading above 151.50 with a bullish bias. However, ING forecasts suggest that USD/JPY will likely move towards the 145.00 handle. By the end of 2024, the USD/JPY will be near the 140.00 level.

So, if we take the ING forecast as true, it means the USD/JPY will likely lose close to 1100 pips in the year 2024 alone. As for the reason behind this bearish move, ING added that Yen (JPY) can now be used as a currency for funding.

In fact, the world is experiencing low volatility, which makes the JPY an ideal currency for major economies around the world.

For the short-term outlook, ING believes USD/JPY will be trading in the range of 150.00 to 152.00. This is exactly what we are seeing right now, as the USD/JPY trades above 151.00 for now.

However, the major decline in the USD/JPY will come once the Fed starts to cut rates, which is only a few months away at best. While this happens, the BoJ will be on a path to hike the interest rates, which will increase the appeal of the JPY against the USD.

In short, the ING forecast is based on the assumption that the BoJ will tighten the monetary policy and that the Fed will lower the interest rate from historic highs. In a scenario like this, the USD/JPY trend will shift from positive (bullish) to negative (bearish).

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