Economists at Westpac expect the USD/JPY to move gradually lower and fall to 124 by the end of 2024.

USD/JPY is only forecast to ease to 129 by end-2023

“It seems most appropriate to expect the Yen to, more or less, follow the US Dollar trend over the forecast period given the turn in sentiment against the USD; Japan’s robust growth prospects; and its exposure to the Asian region, where momentum and opportunity are clearly building.” 

“USD/JPY is only forecast to ease to 129 by end-2023. However, as rate cuts are delivered in the US and the rate differential narrows, the down-trend is expected to accelerate, with 124 the target for end-2024.”