J.P. Morgan: The recovery of the Japanese Yen may continue further.

J.P. Morgan economists stated in a report that the recovery of the Japanese yen may continue as the Bank of Japan raises interest rates and the Federal Reserve lowers them. They indicated that the inflation-adjusted US-Japan real interest rate differential is expected to narrow significantly over time. "We also believe that the yen may benefit from de-dollarization transactions, which began during the tariff war and may continue this year amid greater uncertainty in the US policy framework." J.P. Morgan's target is for the USD/JPY exchange rate to fall below 150 yen. According to data from the London Stock Exchange Group, speculation about possible joint intervention by the US and Japan to bolster the yen caused the dollar to fall by 0.9% to 154.17 yen, after previously hitting a two-and-a-half-month low of 153.20 yen.