Key Takeaways
- 💱 UBS raises its USD/JPY forecast to reach 155 by December 2024, followed by 152, 150, and 147 in subsequent months.
- 📈 Possibility of a near-term surge to 158-160 if U.S. 10-year yields rise.
- 💼 Anticipated downward pressure on USD/JPY in 2025 due to Fed rate-cutting cycle and trade tensions.
- 📉 UBS estimates USD/JPY should trend toward 145-146 in the long term.
- 🔄 UBS recommends investors to tactically sell USD/JPY during a near-term spike toward 160.
The Forecast for USD/JPY by UBS
UBS has raised its forecast for the USD/JPY pair, predicting it to reach 155 by December 2024. This forecast is followed by projections of 152, 150, and 147 in the months that follow. The potential for a near-term surge to 158-160 exists if U.S. 10-year yields rise, according to UBS. However, looking ahead to 2025, there is anticipation for downward pressure on the USD/JPY due to the Fed’s rate-cutting cycle and ongoing trade tensions. UBS estimates that in the long term, the USD/JPY should trend toward 145-146. As a result, UBS recommends investors to tactically sell the USD/JPY during any near-term spike towards 160.