2018 Japanese Yen Forecast
2018 forecasts for the Japanese Yen (USD JPY) varies between banks and from month to month. This article gives you a general USD JPY forecast trend. It also shows how it may impact your money transfers timings or your travel decisions.
The Japanese Yen (USD JPY) has been strengthening since the beginning of the year. Currently the USD JPY is at 105.00, from 112.00 in January. This is the lowest USD JPY rate in one and a half years.
Major banks think the Japanese Yen will continue to rise against the US dollar in 2018. Initially bank analysts were expecting the USD JPY to move to 105.00 by the end of the year. Bank forecasts have since been revised for the USD JPY to fall towards 100.00.
Why the forecast revisions?
In a nutshell, there are greater global political and possible economic risks expected in the second half of the year. These risks lead to increased uncertainty and the Yen is seen as a stable and ‘safe’ currency to buy during these times.
Travellers holidaying in Japan to experience spectacular cherry blossoms won’t be able to benefit while the Yen is going higher. However, it also depends on what your home currency is doing.
For example, if you’re from New Zealand, you won’t get as much Japanese Yen. This is because the NZD JPY will be dragged down by a weaker New Zealand dollar. This means the NZD JPY exchange rate will move higher.
Meanwhile, tourists from Europe will benefit from a more favourable exchange rate with the Euro potentially rising against the Yen. This also means the EUR JPY exchange rate will move lower.
Check out our currency calculator for the best rates from different money transfer providers to help you with your decision.
How Does a Rising Yen Affect My Overseas Money Transfers?
If you’re looking to transfer money abroad from Japan or send money into Japan, timing can be really important. In general, a stronger Yen relative to destination currency will make it cheaper for you to transfer money overseas. Meanwhile, a weaker Yen relative to the destination currency means it will be more expensive.
For example, if you’re being paid in foreign currency and spending your money locally, you might not get as good a conversion rate as the Yen gets stronger. On the other hand, if you’re being paid in Japanese Yen and are transferring your money overseas, you might get a better rate.
At the end of the day, it really depends on which destination you’re sending your money to. Here are what bank analysts expect in 2018 for the 3 key exchange rates:
Major banks agree that in 2018, the EUR JPY will move in a similar range as 2017. Most are expecting the exchange rate to trade between 130.00 and 145.00 and remain steady throughout the year.
Exiap Says: A steady EUR JPY means you should be able to transfer money overseas anytime this year and not worry about the rate. However, banks can charge additional money transfer fees and terrible exchange rates so it is important to look at a variety of money transfer options.
The AUD JPY exchange rate is expected to remain flat around the 80.00 level near term according to major banks. In 2018, it looks like most banks expect the AUD JPY rate to move between a 75.00-85.00 range, slightly lower than in 2017.
Exiap Says: A flat Australian Dollar relative to Japanese Yen means you’ll be able to see those cherry blossoms in Japan, without worrying about a more expensive rate for your travel money before you go. We still recommend you check the market exchange rate so you can compare it with what your money exchange provider is offering.
The NZD JPY rate is highly volatile, but bank analysts generally expect the NZD JPY to move higher in the short-term. For the rest of the year, bank analysts predict the NZD JPY will move slightly lower towards a 65.00-75.00 range, from 75.00-80.00 currently.
Exiap Says: A stronger Japanese Yen relative to the New Zealand Dollar means you can spend more NZD while you’re holidaying in New Zealand or moving money across.