Fukuoka Finance: The exchange rate of the dollar against the yen is expected to rise to 165 by the end of 2026.

"The situation of the weakening Japanese yen has not changed at all. The key is that the Bank of Japan has not raised interest rates significantly, and real interest rates are still deeply negative," said Tohru Sasaki, chief strategist at Fukuoka Financial Group. He expects the USD/JPY exchange rate to rise to 165 by the end of 2026. "I believe that the rate cuts by the Federal Reserve are basically over. If the market starts to price this in, it will be another factor pushing up the USD/JPY exchange rate."