USD/JPY is trading at its highest level in more than 20 years. In the view of economists at Westpac, a move to 135 is not outside realms of possibility.

Sustained trade above 130 appears just a matter of time

“With the Fed set to execute a series of 50bp moves, and commence an aggressive QT program next week, it’s hard to imagine that we have seen the highs for USD/JPY, and sustained trade above 130 appears just a matter of time.”

“We would have to argue that a move to 135 is not outside the realms of possibility, though of course would expect to see topside barriers being defended and MoF commentary as factors that may slow the pace.”