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Japanese yen outlook shifts as BoJ expected hike moves earlier

Standard Chartered now expects the Bank of Japan to deliver a 25 bps hike in September instead of October, lifting its terminal policy rate forecast to 1.75%.

Reported · Written up by our desk · Major Pairs

Standard Chartered strategists revised their Bank of Japan rate outlook, moving forward a planned 25 bps hike to September from October and raising their terminal rate forecast to 1.75% from 1.50% previously, according to FXStreet.

The firm also expects two additional BoJ hikes in 2027, while pointing to ongoing risks from potential FX intervention as USD/JPY trades close to 160.

In terms of its USD/JPY view, Standard Chartered said it keeps targets at 158 by end Q3 and 160 by end Q4, even after the pair pulled back toward about 159.

FXStreet also notes the broader context for the currency market, including that the yen outlook is interacting with the US dollar as USD/JPY hovers near the 160 area.

Latest closeUSD/JPY 159.31 ▼0.1%

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