Economists at Commerzbank discuss USD/JPY outlook.

Japanese officials will probably use a stricter tone over the coming weeks

“In view of the high inflation levels the best approach for supporting the Yen would be a reversal in monetary policy. However, the BoJ still seems quite a long way off doing that at present. To intervene in a situation like this, i.e. following a strategy of leaning against the wind, would probably simply accelerate the depreciation speed of the JPY.”

“If the US central bank sticks to its hawkish rhetoric with the market increasingly banking on a further Fed rate hike in June USD is likely to remain supported against JPY for now. So it is possible that Japanese officials will use a stricter tone over the coming weeks.”