USD/JPY is expected to move downward over the coming months. Economists at Rabobank see the pair at 125 on a 12-month view.

USD/JPY to edge moderately lower on a 12-month view

“Although the USD is finding support on the market’s acceptance that Fed rates will likely stay higher for longer on the back of resilience in the US economy, we see potential for USD/JPY to edge moderately lower on a 12-month view on the assumption that the BoJ makes some cautious steps towards reversing its ultra-accommodative policy.” 

“We see scope for USD/JPY to move to 125 on a 12-month view.”