Economists at Société Générale discuss JPY outlook. The USD/JPY pair is forecast at 125 by the end of the year.

Yen to continue to appreciate gradually in the next few years

“We expect the Japanese Yen to resume appreciating and the USD/JPY pair to move toward 125 at the end of 2023.”

“We are also expecting the Yen to continue to appreciate gradually in the next few years, along with the US treasury yield decline and the rising possibility of Japan overcoming deflation.”