The Yen has rebounded modestly supported by the release of stronger than expected wage data from Japan. Economists at MUFG Bank stick to their forecast of USD/JPY 120 this year.

Favourable outcome for spring wage negotiations needed to trigger a stronger JPY rally 

“The stronger monthly wage data will need to be backed up as well by a favourable outcome for the spring wage negotiations to trigger a stronger rally for the Yen.”

“The Yen is currently lacking a fresh catalyst to trigger further gains although we still expect USD/JPY to move into the low 120.00’s this year.”