USD/JPY set to decline toward 133 by late 2024 – Wells Fargo

For the Yen, economists at Wells Fargo see potential for stronger appreciation next year. 

Likely hawkish monetary policy shift from the BoJ later this year

The Japanese currency has remained a significant underperformer so far this year, especially as the US economy has remained resilient, prospects for Fed easing have been pushed out, and the BoJ has not adjusted monetary policy settings. Accordingly, the prospects for significant Yen strength have also been pushed out. 

That said, a likely hawkish monetary policy shift from the Bank of Japan later this year, combined with a weak US economy and lower US interest rates next year, should see the Yen strengthen to 133.00 by late 2024.