USD/JPY Forecast 2026: JPMorgan Flags 156.50-156.60 After Yen Rebound
Crédit Agricole expects renewed Yen weakness before a 2027 recovery, while JPMorgan sees near-term demand from Japanese investors.
Crédit Agricole expects the US Dollar to Japanese Yen (USD/JPY) exchange rate to climb to 163 by December 2026, even as JPMorgan identifies signs of Japanese buying interest in the Yen.
Friday’s close of 157.29 leaves Crédit Agricole’s year-end forecast around 3.6% above the market.
USD/JPY fell 0.97% that day, surrendering most of its weekly advance as the Yen recovered following fresh comments from Finance Minister Satsuki Katayama about US concerns over Yen weakness.
Crédit Agricole’s path falls from 163 in December to 162 in March 2027, 161 in June, 158 in September and 156 in December 2027.
It argues that official currency support needs stronger backing from monetary policy:
“Record levels of intervention have capped USD/JPY’s rally at 164, but for the JPY to stage a sustainable rally, the BoJ needs to accelerate the pace of its rate hikes, reducing the currency’s appeal as a carry funder.”
JPMorgan’s 157.80 pivot has already given way
JPMorgan’s earlier assessment identified two support levels:
“Rate check pivot around 157.80 will provide some short term support with 156.50/60 below”
Friday’s close was beneath that first level, leaving 156.50-156.60 as the next lower area to watch.
The desk saw more local Yen demand near recent USD/JPY highs, although overseas institutional investors had increased Yen selling during the week.
It also questioned how effectively intervention could offset broader pressures:
“As you know I really do not doubt the intentions but I am starting to worry about the efficacy of the actions so far in the face of what is a huge energy and fixed income shock.”
Crédit Agricole similarly cites elevated oil prices and Japanese fiscal concerns as obstacles to lasting Yen gains.
The 156 end-2027 forecast is less than 1% below Friday’s close, but the intervening path includes renewed Yen weakness towards 163 before that recovery.
Our currency coverage draws on live market data, official economic releases and published bank research.










