USD/JPY Forecast: UBS’s Decisive 140 Outlook by Year-End

Key Points

1. The USD/JPY forecast of 140 signifies a notable strengthening of the US Dollar relative to the Japanese Yen, reflecting monetary policy divergence.

2. The Bank of Japan's (BoJ) accommodative policy, including Yield Curve Control (YCC) and negative interest rates, contrasts with the US Federal Reserve's tightening stance.

3. A strong USD/JPY impacts global financial flows, carry trades, and trade competitiveness, influencing broader Forex market dynamics.

4. Historical trends show that USD/JPY movements are often driven by monetary policy divergence, providing context for current forecasts.

5. Investors should consider the UBS prediction as a directional guide while remaining aware of market volatility and external factors.