USD/JPY: BoJ’s incremental steps toward policy normalization should support a recovery in the Yen – UBS

The strength in the Dollar pushed USD/JPY back above 150.00. Economists at UBS analyze Yen’s (JPY) outlook.

The current entry point to buy the Yen is attractive

We think the BoJ's policy normalization remains on track this year on strong wage hike negotiations and corporate profitability. 

We maintain the view that the Japanese Yen has likely reached a turning point after significant underperformance between 2021 and 2023.

With the US-Japan 10-year yield differentials expected to narrow as the year progresses, we think the current entry point to buy the Yen is attractive.