USD/JPY to see a major correction in Q4, ending the year at 127 – BofA

USD/JPY has surged above 140. The pair is expected to stay elevated before staging a major correction into the fourth quarter, economists at the Bank of America Global Research report.

USD/JPY to remain elevated until US inflation starts to decelerate

“We expect USD/JPY to remain elevated until US inflation starts to decelerate.”

“We expect USD/JPY to remain above 135 through the summer and corrected into 2023 from 4Q22. However, the structural JPY weakness should reemerge longer-term. We expect USD/JPY to end 2022 at 127.”