Toward the end of New York trading, USD/JPY is trading in the low ¥159 range. Some analysts believe there is room for further yen weakness unless US fundamentals change significantly.
Toward the end of New York trading, USD/JPY continues to trade in the low ¥159 range. Despite Treasury Secretary Scott Bessent's announcement of economic sanctions against Iran, the market has shown no significant reaction so far, leaving movements in USD/JPY limited.
Some analysts at major securities firms believe that, unless US fundamentals change significantly, the yen has room to weaken further against the dollar. While the trend toward a weaker dollar continues, some also point out that yen weakness remains firmly in place.
Continued tensions in the Middle East are expected to push up energy prices, and the forecast for the Federal Reserve's terminal rate is expected to remain elevated. Some analysts also point out that higher import costs for Japan could affect its terms of trade.
Analysts' fair value models for USD/JPY are generally said to indicate a level of around ¥167. US fiscal developments and global risk sentiment are being watched as key factors linking current levels with the outlook ahead.