09:45 AM EDT, 05/28/2025 (MT Newswires) -- UBS said it keepsits USDJPY forecasts unchanged at 142, 140, and 138 for September 2025, December 2025 and March 2026, respectively.

The bank added it was introducing a target of 136 for June 2026.

Ongoing de-dollarization should keep the USDJPY on a broader downtrend, although the recent spike in Japanese government bond yields could slow the

USDJPY's decline if it prompts the Bank of Japan to tone down its hawkish bias, stated UBS.

Given the bank's medium-term bearish USDJPY view, UBS favors selling the exchange rate on rallies, as well as selling upside risk for yield pickup.