Kengo Suzuki, senior strategist in the investment analysis department of Mizuho Investor Relations, said that the US economy is mainly supported by the artificial intelligence boom, but it has shown signs of slowing down, and the yen is expected to rise to around 153 against the US dollar by the end of the year. Suzuki said that the current strength of the US dollar is “excessive”. It is expected that by the end of March 2027, the yen will rise to around 150 against the US dollar. Given that the US mortgage interest rate is higher than 7%, the US economy may gradually begin to slow down within six months, thereby limiting the room for the dollar to rise. If the yen exchange rate approaches 159, the bullish view of the yen may need to be re-evaluated, and the 158.5 level where the 200-day moving average is located will receive attention. The consensus between Japan and the US to stop depreciating the yen is significant; if the yen continues to depreciate and falls below 160, intervention is expected to curtail shorting the yen.

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