USD/JPY forecasts change all the time, affected by news events and relative sentiment towards the US and Japanese economies and this exchange rate is even more volatile than usual because of the uncertainties around the Coranavirus pandemic.
Despite USD weakness in August, the yen did not see growth from safe-haven demand and suffered losses. In August it was announced that the Prime Minister of Japan will stand down, ending his term as the longest-serving leader in the nation’s history. The announcement triggered volatility in the yen and will continue to contribute to an environment of uncertainty. Key points for potential leadership candidates will be how the country deals with the impact of COVID-19, the current deep economic downturn and disputes with its neighbors in China and South Korea. September Currency Update
Goldman Sachs and RBC Capital forecast a large drop for US dollar against Japanese Yen to continue with a USD/JPY rate of 95 in the near future.
The Japanese yen has held gains, since December 2019 it has increased over 2% against G10 majors. If we continue to see second waves in infections, safe haven demand for the yen could increase, especially as the US’s COVID-19 recovery is drawn out and outlook for the USD is negative, at least until the elections.
The foreign exchange market convention for USD/JPY is to quote Japanese yen as Yen per US dollar. Thus a higher USD/JPY rate actually means one yen is worth less, that is you can buy more yen for 1 USD.
You can read about other USD exchange rate forecasts here US Dollar Trends and Forecasts for 2020.
This is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate’s current relative value is to look at the Japanese yen’s history against a range of currencies and in particular against the currency you are interested in exchanging it with.
For example, the following tables look at the change in the USDJPY exchange rate to the present day for periods going back 10 years for popular JPY exchange rates.
| USD/JPY rate | Change | Period |
|---|---|---|
| 18 Sep 2020 : 104.5650 | 1% ▲ | 1 Week |
| 26 Aug 2020 : 105.8745 | 0.3% ▼ | 30 Days |
| 27 Jun 2020 : 107.1800 | 1.5% ▼ | 90 Days |
| 26 Sep 2019 : 107.7530 | 2% ▼ | 1 Year |
| 27 Sep 2015 : 120.5696 | 12.4% ▼ | 5 Years |
| 28 Sep 2010 : 83.9538 | 25.8% ▼ | 10 Years |
USD/JPY 10 year historic rates & change to 25-Sep-2020 : 105.5910