By year’s end 2023, according to HSBC economists, USD/JPY would decline due to a variety of considerations, including upcoming BoJ policy statements, developments in Japan’s payments balance as well as a resurgence of the JPY’s “safe refuge” reputation.
Yen’s resurgence as a “safe space” currency might affect USD/JPY.
Numerous forthcoming activities could influence the BoJ’s policy in the future. The next BoJ governor will probably be proposed by PM Kishida sometime in Feb. On Mar 10, Governor Kuroda shall preside over his last meeting on monetary policy. From around the middle of March, the very first Shunto (yearly wage discussions) outcome tallying will probably be made public. On Apr 28, the new governor would preside over his initial meeting on monetary policy.
n addition to the BoJ, there are additional plausible changes that could push the USD/JPY down in 2023: capital markets forex-hedging their own international investment; an appreciable difference in Japan’s fundamental balance of payments owing to the JPY undervalue. and tourism recovery; and a reemergence of the JPY’s neutralize nature and’ safe sanctuary’ prestige throughout risk-off occurrences – as US yields decline.
