Usdjpy To Reach Lower Westpac

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Usdjpy To Reach Lower Westpac

Usd/Jpy To Reach 127.00 - Westpac

Analysts at Westpac have shared their forecast for the USD/JPY. According to them, USD/JPY will reach 138.00 by the end of 2024. Now, that's way lower than the recent price of USD/JPY, which is around 149.00.

In addition, Westpac added that USD/JPY will move even lower towards 127.00 by the end of 2025. In other words, Westpac believes that USD/JPY will keep moving lower throughout the year 2025.

Japanese Yen To Strengthen In 2025

But why is the Westpac so bullish on JPY? The key reason is that the Japanese economy has robust opportunities for growth in the year 2025.

The relationship of Japan with Europe and the USA is very strong. When we combine that with their industrial and technological powers, it becomes clear why Japan's economy is poised to grow.

The growth prospects of the Japanese economy are very strong in the short and long term. Now, the only thing that remains to be seen is whether the inflation can stay above 2.0% or not.

Japan needs an inflation rate higher than 2.0%, at least in the medium term, to spark growth. In these conditions, the difference between Japan's and the rest of the world's interest rates will become dependent on the FX movements. Now, that's a factor that could limit the gains in the Japanese Yen.

Amidst all of this, HSBC has issued its forecast that the USD/JPY will be seen moving lower from 149.00 to 1380.00. For 2025, they added that the bearish pressure will stay consistent and send the USD/JPY toward the low of around 127.00.

However, the one thing that's missing in this forecast is Trump's tariff plans. Japan is a big exporter to the USA & it wouldn't miss the eyes of President Donald Trump. According to experts, Trump may put higher tariffs on Japanese cars and other export products.

If Japan faces higher tariffs, it could cause some trouble for the JPY and may change the forecast for the USD/JPY.

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