Economists at Nordea discuss JPY's outlook and maintain a bullish stance.

Turn-around in BoJ monetary policy expected  later this year

“We remain fairly optimistic on JPY due to our expectations of a turn-around in BoJ monetary policy later this year.”

“With inflation reaching the highest point in decades and an outlook for higher wage growth ahead, the time should be ripe for a normalisation of BoJ’s stimulative monetary policy.”

“Moreover, JPY’s safe-haven status should come in handy if the negative risk outlook for the global economy and stocks materialise, and/or other G10 central banks are forced to cut rates.”