It is only a matter of time before USD/JPY makes new cyclical highs – BBH

USD/JPY is consolidating around 151.60 and struggling to break above its November 2023 high of 151.91. Economists at BBH analyze the pair’s outlook.

Threat of FX intervention is offering JPY support

The threat of FX intervention is offering JPY support. Japan’s Finance Minister Shunichi Suzuki warned again he’s ‘watching forex moves with a high sense of urgency’.

Japan’s February CPI print suggests the bar for an aggressive BoJ tightening cycle remains high. Bottom line: we think it’s only a matter of time before USD/JPY makes new cyclical highs.