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USD/JPY Forecast: Can Diverging Rate Paths Push the Yen Back to 100?
On Thursday, August 8, the USD/JPY extended its winning streak to three sessions, returning to 147. After the market disruption caused by the Yen carry trade unwind, Bank of Japan Deputy Governor Uchida Shinichi ensured the USD/JPY remained above 140. However, the BoJ’s Summary of Opinions indicated that interest rates will continue to rise. This could lead to a narrowing of the interest rate differential between Japan and the US, potentially driving the USD/JPY below 140. The Kobeissi Letter, a leading commentary on the global capital markets considered the size of the Yen carry trade, stating, “According to ... (full story)