JP Morgan forecasts USD/JPY to as high as 155 before meaningful BOJ FX intervention

<p>JP Morgan Asian market analyst says that the potential high for USD/JPY in 2023 is around ¥152, and in 2024 to ¥155 .</p><p>Citing familiar points, most notably divergent monetary policy between the US Federal Reserve and the Bank of Japan, which has lead to a huge yield differential between the USD and yen, a differential that continues to widen. Says the BOJ is not able to do much about this given its holding rates negative to encourage inflation while the Fed is the opposite. </p><p>As for intervention to halt the losses for yen, this is not so easy:</p><ul><li>Japan's foreign exchange reserves are limited</li><li>the 2022 interventions cost the country about US$62 billion</li><li>which will dissuade the government from aggressive intervention (this Japan's Ministry of Finance that instructs the BOJ to intervene) until the rate hits circa 155</li></ul><p>Weekly USD/JPY candles:</p>

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