Economists at HSBC analyze the USD/JPY outlook. The pair is expected to move downward in the medium-term.

USD/JPY driven by US developments for now

“We remain bullish on the JPY over the medium-term, but suspect some patience will be needed for the currency to enjoy some independent strength courtesy of the Bank of Japan (BoJ).”

“For now, USD/JPY will likely remain driven by US developments where we see the balance of risks skewed to USD weakness.”

See: USD/JPY set to test the 120 level into year-end – CIBC