USD/JPY has moved from 115 to 129 within less than two months. Economists at Nordea expect the pair to rise above 130, however, USD/JPY should shift back lower in the second half of 2022.

USD/JPY to turn and move lower during H2

“Entering a period of FX intervention is a possibility but the impact on the yen is unlikely to leave a lasting impact on the yen if the Bank of Japan (BoJ) continues to purchase JGBs at the same time.”

“Back in 2002, USD/JPY topped at 135 and we expect USD/JPY to move above 130 during the next couple of months. But we expect USD/JPY to turn and move lower during the second half of the year.”