Societe Generale Predicts USD/JPY Falls to 157 by Year-End, 154 by Q2 2027

According to Societe Generale analysts, the Japanese yen's sustained recovery requires improved economic growth prospects, though the government may intervene further to support the currency. Japan holds approximately $1.3 trillion in foreign exchange reserves to defend the yen, but current low growth expectations should limit the currency's gains. The analysts noted that a recent surge in Japanese equities suggests the economy may be improving. Societe Generale forecasts USD/JPY will fall to 157 by year-end and decline to 154 by the second quarter of 2027.
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