OCBC Forecasts Turning Point for Undervalued Japanese Yen
Singapore-based financial services group OCBC has identified the Japanese yen (JPY) as one of the most undervalued currencies globally and near a turning point. The bank's forex strategists noted that, unlike the Chinese yuan, the JPY’s low valuation hasn't alleviated depreciation pressures. A rare coordinated intervention by Japan and U.S. authorities in July pushed the yen to multi-decade highs but failed to provide lasting support without domestic policy changes. OCBC believes such policy shifts are emerging as the Bank of Japan (BoJ) shows signs of accelerating monetary normalization, narrowing its gap with other major central banks like the Federal Reserve. The bank revised its JPY forecast for end-2026 from 160 to 155 against the U.S. dollar and expects it to reach 150 by late 2027. The yen could gain further support if Japanese investors shift back toward domestic assets, creating a
Topics: Central Bank Policy Foreign Exchange Market Japanese Yen