USD/JPY: One-month forecast revised up to 148.00 – Rabobank

Economists at Rabobank analyze USD/JPY outlook ahead of Japan’s December Consumer Price Index (CPI) inflation data.

Selling pressure on JPY if CPI report confirms that inflation in Japan has peaked

Further confirmation that CPI inflation in Japan has peaked would likely add to the selling pressure on the JPY in the near-term. 

Given our view that the market will continue to unwind optimism regarding the pace of Fed rate cuts this year, we expect further broad-based gains for the USD on a 1-to-3-month view. 

We have revised up our one-month USD/JPY forecast to 148.00 from a previous forecast of 144.00.