It is reported that the Japanese Yen may well become the world’s leader in terms of strengthening next year relative to other major currencies. This is the supposition made by Morgan Stanley. JPMorgan Chase experts share this expectation. At the same time, the supposition is backed by the latest report published by Bloomberg.
The thing is, while the Japanese current account surplus is widening, the Bank of Japan cannot influence the Japanese Yen by any means without harming the national economy. Therefore, we can conclude that next year the Japanese economy is going to grow mainly at the expense of higher salaries in the public sector as well as massive structural reforms.
The experts assume that the Japanese Yen may even outpace the U.S. Dollar in terms of the pace of strengthening versus other currencies. Therefore, JPY is also expected to get stronger versus USD. The lost likely USDJPY exchange rate is 115, they say.
Masterforex-V Academy experts say that this scenario is very likely. Chances are, JPY ends up 2016 as one of those major currencies showing the biggest growth rate versus other currencies. It is interesting to note that most of the experts interviewed by Bloomberg expects USDJPY to trade around 110 in late 2016.
As you probably know, the Japanese Yen has been losing its value against the U.S. Dollar over the last 4 years. Over the course, JPY has lost 40% of tis value vs USD. This year, the weakening has slowed down and is reported to be around 3%.
