USD/JPY traded as high as 137.70 on Tuesday but has since fallen back to around 136.60. Economists at BBH expect the pair to tackle the July 14 high near 139.40.

Japan eases COVID-19 entry requirements

“The USD/JPY pair remains on track to test the July 14 high near 139.40.”

“Japan will end its requirement for boosted inbound travelers to show a negative covid test result to enter the country. This will go into effect on September 7. With the economy showing signs of slowing, it’s clear that policymakers are looking to boost tourism in the coming months. Of note, the weak yen should help promote foreign visitors.”