FXStreet reports that economists at Westpac expect Japan’s yen to continue losing ground against the US dollar and see USD/JPY trading at 112 and 113 by the end of 2021 and 2022.

“The recovery in GDP there can only be described as weak and disappointing, and annual core inflation is at zero despite considerable support from upstream prices.”

“The BoJ will have no alternative but to continue its extraordinary measures at full stretch for the foreseeable future, in the hope of moving towards 2.0%yr inflation, while the rest of the world normalises.”

“USD/JPY is therefore seen at 112 end-2021; 113 end-2022; and 116 end-2023.”