Usdjpy To Reach Lower Rabobank

last updated on

Usdjpy To Reach Lower Rabobank

Usd/Jpy To Reach 145.00 In The Next 3 Months

Rabobank's economists have issued a new forecast for the USD/JPY. Earlier, they had set a 3-month target of 146.00, which is now lowered to 145.00.

For now, USD/JPY can be seen near 148.80, which tells us that the pair could drop by almost 380 - 400 pips within the next three months. This forecast also highlights that Rabobank is more bullish on the JPY against the US Dollar for the medium term.

Boj To Hike Rate In 2024

Rabobank added that the BoJ rate hikes will provide a limited opportunity for the USD/JY. After all, only one member of the BOJ believes that the time is right for a policy action, while the others remain indifferent.

According to various market surveys, the best month to introduce the first rate hike for the BoJ is April 2024. Similarly, others think the best time for BoJ to hike the rate is during the 19th March meeting.

The situation is getting interesting as the G10 countries are finally thinking about rate cuts while Japan is on a different path altogether.

It shouldn't be surprising if we see a different policy divergence between the Fed and the BoJ. That's one of the reasons why Rabobank has issued a bearish forecast for the USD/JPY.

In the next 12 months, the USD/JPU will move lower and reach 135.00, 1000+ pips away from the current trading price. That's also a bearish forecast, suggesting that the monetary policy will play a key role in USD/JPY.

Rabobank will target 145.00 USD/JPY in the next three months. As for their yearly forecast, they have set an even more bearish target near 135.00, which means 2024 will not be so good for the greenback.

Appreciating the JPY against the USD means we will see similar actions in the EUR/JPY, GBP/JPY, and other JPY-denominated pairs.

Trending Stories