Economists at Wells Fargo expect a stronger Japanese yen (JPY) against the Japanese yen American dollar (USD) by 2024.
The Japanese yen will be better this year
The yen has been on the defensive earlier this year as soft Japanese data keeps the Bank of Japan calm and US economic trends show some resilience. However, we still expect US growth to slow, Fed monetary easing and US bond yields to fall, all of which should support the Japanese currency.
We also believe the BoJ is moving steadily and gradually towards policy normalization, with a rate hike forecast in April. As Japan is likely to be one of the few countries to buck the global monetary easing trend this year, we expect the Japanese yen to outperform over the course of the year, targeting a USD/JPY exchange rate of 141 by the end of 2024. 00.