The USD/JPY pair briefly surged to a new peak at 151.97, catching the attention of economists at BBH who delved into the pair’s future prospects.
According to BBH analysts, the inevitability of USD/JPY breaking higher seems increasingly apparent. Japan’s Finance Minister, Shunichi Suzuki, reiterated concerns over market movements, emphasizing a vigilant stance towards potential excessive volatility. He emphasized the readiness of authorities to take decisive action against unwarranted fluctuations, recalling the Bank of Japan‘s (BoJ) intervention to counteract yen weakness in the period between September and October 2022.
BBH’s outlook remains optimistic, foreseeing an imminent upward trajectory for USD/JPY. They anticipate this trajectory to be driven by a gradual tightening stance from the BoJ juxtaposed against a Federal Reserve easing cycle that is anticipated to be less aggressive than currently priced in.
Looking ahead, BBH identifies the 151.95-152.00 zone as the next significant technical hurdle for USD/JPY. Beyond this level, the pair faces a notable resistance barrier not encountered until the 160.00 mark, last seen in April 1990.
As the USD/JPY pair continues its upward momentum, analysts and market participants alike remain attentive to developments, poised to navigate the evolving landscape of global currency markets.
