Societe Generale Expects USD-JPY to Fall to 157 by Year-End

Societe Generale analysts said Japanese government agencies may further intervene to support the yen, but a sustained recovery in the currency would require an improved growth outlook. According to Jin10, the analysts said Japan still has about $1.3 trillion in foreign exchange reserves available to defend the yen, but lower growth expectations should currently limit the currency’s upside. They added that a sharp rise in Japan’s stock market suggests the country’s economy may be about to improve. Societe Generale forecast that the U.S. dollar against the Japanese yen will fall to 157 by year-end and to 154 by the second quarter of 2027.