The Japanese yen has reversed course versus the US dollar after sustained losses. Economists at MUFG Bank believe that the peak in USD/JPY may be behind us.

Clear turnaround in yen weakness may only materialise later in the year

“Global financial conditions remain highly uncertain and therefore we cannot say with complete confidence that the sell-off of the yen has turned but we do see increasing evidence that the peak in rates may be topping out.”

“We still expect commodity prices to increase further though which may mean a clear turnaround in yen weakness only materialises later in the year, but a peak in USD/JPY may now be in place.”