With a USD/JPY price forecast of more than 17% for 2022, Kuroda has signaled the potential end of Yen weakness. However, he has also warned that further yen weakness will impede business planning, which could affect the Japanese economy. As a result, Kuroda has reiterated that the policy of quantitative easing, or QQE, with Yield Curve Control, will continue.
The Japanese yen is under pressure from a number of factors. The USD/JPY price forecast suggests that the central bank may intervene to stem Yen depreciation. However, the BoJ may have to sell US securities to fund FX intervention. This could lead to further pressure on the US bond market.
