Analysts from The Bank of Tokyo-Mitsubishi UFJ, expect the USD/JPY pair to trade around 110 over the next quarters.

Key Quotes:

“In April, the JPY remained at around JPY 111 against the USD; however, it is currently at around JPY 108 per USD owing to risk aversion brought about by additional tariffs imposed on goods between the US and China and the announcement by the US that it would also introduce tariffs against Mexico.”

“This strong JPY is not expected to continue, despite some fluctuation caused US trade policy, due to the continuation of a certain gap between Japanese and US interest rates. The JPY will trade at around JPY 110 per USD.”