Economists at Wells Fargo see the Japanese currency strengthening over the medium term, targeting a USD/JPY exchange rate of 135.00 by Q1-2024.

Fed to stop raising rates by early 2023

“Although we anticipate US Dollar strength to continue into early 2023, we see the Japanese currency strengthening over the medium term, and believe the USD/JPY exchange rate could reach 135.00 by Q1-2024.” 

“Changes in economic fundamentals should be a more influential currency driver than recent foreign exchange interventions, and we believe the Yen will be especially sensitive to changes in monetary policy rates. Given we expect the Federal Reserve to stop raising rates by early 2023, we see solid prospects for a stronger Yen past that point.”