Usdjpy To Rally According To Bbh

Usdjpy To Rally According To Bbh by Andrew Blumer last updated on May 17, 2025

Usd/Jpy To Rally Above 152.00, According To Bbh

According to BBH strategists, it is only a matter of time before the Dollar/Yen pair will stage yet another impressive rally. The pair is expected to cross the 151.00s range, which it is currently trading, and will touch the 152.00 handle.

As for the catalysts behind a bullish USD/JPY, they cited the upcoming Fed easing cycle along with the tightening policy of the Bank of Japan (BoJ).

Ueda Provides Temporary Boost To Jpy

They also added that the recent fall seen in the USD/JPY pair was mainly due to the comments from Ueda (BoJ Governor). As a result, the USD/JPY will rise once again as the rate differentials between the two currencies will become the main theme.

For now, it appears that the Japanese Prime Minister and the Finance Minister are only defending the Yen (JPY) using verbal defense. But given the history of the BoJ, there is a good chance that they will intervene in the markets to boost the JPY.

The BoJ and the government of Japan take the Yen's value against other currencies very seriously. A JPY that becomes too weak against the USD, EUR, and other currencies actually hurts their efforts to boost inflation and wage growth.

Now that the BoJ is moving towards the tightening cycle, it is only a matter of time before we see a higher break in the USD/JPY.

But why will the JPY lose even though the BoJ is hiking its policy rate? At the end of the day, it all comes down to the fact that the interest rate in Japan is lower than that of the USA.

So unless the BoJ makes some big moves while the Fed moves towards the lower rates, the rate differential in the USD/JPY will remain a key theme.

However, we also need to account for the fact that 152.00 is a magical level that can invite FX intervention from the Central Bank of Japan.