ING’s year-end target for USD/JPY now sits at 120.

137/140 should be best levels for a while

“USD/JPY continues to frustrate dollar bears such as ourselves. Neither has the risk environment deteriorated enough nor has US disinflation been strong enough to send USD/JPY sharply lower. However, the US credit crunch makes a recession there more likely, and we have a conviction call that USD/JPY will be trading a lot lower by the end of the year.”

“137/140 may be the best levels for the next two to three years.”

Source: Refinitiv, Macrobond, ING