Fukuoka Financial Group: Expects the USD/JPY exchange rate to rise to 165 by the end of 2026.

Tohru Sasaki, Chief Strategist at Fukuoka Financial Group, pointed out that the situation of the weak Japanese yen has not changed at all, with the key being that the Bank of Japan has not aggressively raised interest rates, and real interest rates are still deeply negative. He predicts that by the end of 2026, the USD/JPY exchange rate will rise to 165. He believes that the Fed's interest rate cuts have essentially ended, and if the market begins to price this in, it will become another factor pushing up the USD/JPY exchange rate.