FXStreet reports that in the view of economists at Westpac, the outlook for the Japanese yen is bleak. They see USD/JPY at 111 by year-end and at 115 by end-2023.

“Japan is one of very few developed nations globally that, come the end of 2022, is expected to still be struggling to get GDP back above its pre-pandemic level.”

“Despite the effect of global supply disruptions on consumer prices, annual inflation is presently negative and unlikely to break above 1.0%yr sustainably, let alone challenge the Bank of Japan's 2.0%yr target anytime soon.” 

“The JPY is expected to underperform the USD as the latter falls to March 2022, and then decline further to the end of 2023 as the US dollar appreciates. At that time, we see USD/JPY at 115 versus its spot level of 110 and end-2021 forecast of 111.”