Here’s a forecast for USD/JPY to drop to 152 by the end of 2024

Analysts at Rabobank say that the data yesterday on Japanese wages (ICYMI, here:

• Japan inflation adjusted wages -1.4% y/y in May)

could pose problems for the Bank of Japan raising interest rates.

However, Rabo sees real wages recovering this quarter and next through due to the effects of wage rises agreed to in spring filtering though.

For the yen:

• to remain weak in the near term, USD/JPY staying around 160 for the next month
• should recover later in 2024, with USD/JPY to 152 by the end of this year

This article was written by Eamonn Sheridan at www.forexlive.com.