Westpac Sees USD/JPY Peak at 162 Before Steady Two-Year Decline

Westpac analysts predict a short-term rally for the US Dollar to Japanese Yen (USD/JPY) exchange rate, potentially reaching 162 by September before retreating. In fact, the pair has already touched this level in July.

The more interesting aspect of Westpac's forecast is the subsequent decline, which they expect to be a remarkably steady pace: USD/JPY easing to 160 in December and remaining there until March 2027, followed by further falls to 158 in June, 156 in September, and 154 at the end of next year.

This would represent a 9.9% fall for USD/JPY and an appreciation of almost 11% for the Yen against the Dollar over nearly two years.