UBS now expects USD/JPY to reach 158 by end-June, up from its prior 155 forecast.
Revised quarterly targets are 156 by Sep, 154 by Dec, and 152 by March 2027, each higher than earlier estimates.
UBS attributes the stronger dollar to high oil prices affecting Japan’s balance of payments and a BoJ tightening stance.
The bank sees narrowing US‑Japan yield gaps and expects two Fed rate cuts, deeming market expectations too conservative.