The Japanese yen strengthened toward 129 per dollar after briefly crossing the 131 level earlier this month, as US Treasury yields retreated sharply on speculations that inflation may be peaking and on a weakening global economic outlook. Meanwhile, the yen remained at depressed levels as a Bank of Japan official said it was inappropriate to change monetary policy for the purpose of controlling exchange rates, according to a summary of opinions at the April meeting. The BOJ doubled down on its massive stimulus program and reinforced a commitment to its super-low yield policy in April, saying it will offer to buy unlimited amounts of 10-year government bonds to defend an implicit 0.25% yield cap around its zero target every market day. This stood in stark contrast to the Federal Reserve, which has been aggressively raising interest rates to combat inflation.
Historically, the Japanese Yen reached an all time high of 358.44 in January of 1971. Japanese Yen - data, forecasts, historical chart - was last updated on May of 2022.
The Japanese Yen is expected to trade at 129.89 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 131.97 in 12 months time.