Analysts from Swissquote Bank suggest that the Japanese yen may depreciate further as the Bank of Japan is unlikely to raise interest rates until at least March. They believe policymakers are waiting for a clearer understanding of the potential impacts of international policies.
Meanwhile, the U.S. dollar has strengthened following indications from the Federal Reserve that it will slow down rate cuts, leading to a rise in U.S. Treasury yields. The USD/JPY exchange rate could potentially reach 160.000. However, Japanese authorities might intervene to support the yen, which could limit further gains in the USD/JPY exchange rate.
