This Japanese Yen forecast will address the factors that could have an effect on Yen exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing JPY at the low and high levels during the past 7 days.

Currency Pair% ChangeDifference on £200,000
GBP/JPY3.5%JPY 8,000

Yen to suffer amid low consumer confidence

Owing to political uncertainty, Sterling has struggled to reach anywhere near post referendum 160 levels against the Yen. In fact, in the last year, we have seen rates jump between 126 and 147 consistently finding resistance towards the top end as Brexit rumours took hold before watching sterling’s gains quickly evaporate.

This month however could present an interesting opportunity for Yen buyers. Despite the political uncertainty on home shores, Sterling has already gained over 3.6% in the last 2 weeks to reach the best levels seen since the start of May. It seems despite the Bank of Japan’s best efforts to encourage spending and economic growth by maintaining negative interest rates, Japanese households and companies alike are still very wary of the country’s economic future and have committed to continue saving. The fear of Japan’s relentless debts count seems to be paralysing the country’s growth. Given its high dependence on imports, it is proving to be a difficult balance act.

When should I buy Yen with Pounds?

The latter part of this week could present excellent opportunities for Yen buyers to capitalise on as retail sales figures are released tomorrow evening followed by a host of inflation, employment and industrial production data is due to be released on Thursday evening. My feeling is most of the info will come in line with projections and a slight retraction on all fronts should be expected, as such the Yen should weaken and a rate of 145 could be on the cards.

If however the stats come out slightly better than expected and the rumours of a slowdown in spending are proven unjustified, I would expect to see GBP’s recent gains quickly reversed. As such, it may be worth contacting your account manager who can help you limit your exposure and make sure you maximise your returns.

Thank you for reading my Japanese Yen forecast, I would greatly appreciate any feedback you have and would take pleasure in replying personally. Feel free to email me here.


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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.