Capital Economics says USD/JPY expected to reach 145 by year-end 2025

Japanese inflation and PMI data support expectations for rising JGB yields, says Capital Economics’ John Higgins.

• The 10-year JGB yield is forecast to hit 1.75% by end-2025, driven by investor reassessments of the BOJ’s policy outlook, with rates likely reaching 1.25% by 2026.
• Stronger yields could also boost the yen, with USD/JPY expected to reach 145 by year-end 2025, according to Capital Economics.

Infor comes via a Wall Street Journal report (gated)

This article was written by Eamonn Sheridan at www.forexlive.com.