Economists at Nordea are quite optimistic on the Yen and expect the USD/JPY pair to potentially dip under 120 by the end of the year. 

Converging monetary policy should support JPY

“With inflation reaching the highest point in decades and an outlook for higher wage growth ahead, the time will be ripe for a normalisation of BoJ’s very stimulative monetary policy. This will support further strengthening of the JPY with moves below 120 being on the cards towards year-end.”

“The full reopening of Japan for foreign tourists, in particular from China, should also be in favour of a stronger JPY.”

“Finally, JPY’s safe-haven status should come in handy if the negative risk outlook for the global economy and stocks materialise, and other G10 central banks are forced to cut rates as markets currently expect.”