USD/JPY to grind higher towards 113 by end-2022 – Westpac

Japan’s yen is expected to continue losing ground against the US dollar over the forecast period, in the opinion of economists at Westpac. They see USD/JPY trading at 112 and 113 by the end of 2021 and 2022, respectively.

See – USD/JPY: Well-placed to retest tough resistance at 112.23/50 – Commerzbank

Japanese yen will continue to lag

“The recovery in GDP there can only be described as weak and disappointing, and annual core inflation is at zero despite considerable support from upstream prices.”

“The BoJ will have no alternative but to continue its extraordinary measures at full stretch for the foreseeable future, in the hope of moving towards 2.0%yr inflation, while the rest of the world normalises.”

“USD/JPY is therefore seen at 112 end-2021; 113 end-2022; and 116 end-2023.” 

“Risks are skewed towards disappointment for Japan’s economy and hence up for USD/JPY.”