Forecasts for the Japanese Yen (USD JPY) changes from bank to bank and from month to month. This article takes a look at the average USD JPY forecast and how it may impact your money transfer timings or holiday travel decisions.
The Forecast for the Yen in 2018
The Japanese Yen is set to firm up against the US dollar (USD JPY) during 2018. Most bank analysts are expecting the USD JPY to move towards 100.00 from current levels of 108.94.
Transferring Money Overseas
If you’re looking to transfer money abroad from Japan or send money into Japan, timing can be really important. A lot of it depends on which currency you want to convert to. In general, a weaker Yen relative to the destination currency means it will be more expensive to transfer money overseas, while a stronger Yen relative to destination currency will make it cheaper.
Check out the forecasts below for the average exchange cross rates expected in 2018.
How to Find the Cheapest Way to Transfer Money Overseas
Compare The Total Cost
The total cost of the transfer comes down to 2 things:
1. Transfer Fees
Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.
2. Exchange Rate Margin
There is no “standard” exchange rate. Each bank will offer you a different exchange rate based on the currency you want to send overseas and the amount you need to send.
Money Transfer Comparison Tool
How does a rising Yen affect me?
If you are an expat living in Japan you might be feeling less happy the Yen is going to go up next year, but it really depends if you’re being paid in local or foreign currency. If you’re being paid in foreign currency and spending your money locally, you might not get as good a rate next year as the Yen gets stronger.
On the other hand, if you’re being paid in Japanese Yen and are transferring your money overseas, then you might get a better rate, but it really depends on which destination you’re sending your money to. Check out our currency calculator for the best rates from different money transfer providers.
Travellers going on holiday to Japan won’t be able to benefit from the Yen going higher, but it really depends on what your home currency is doing.
For example, if you’re from New Zealand, you won’t get as much Japanese Yen, because the NZD JPY will be dragged down by a weaker New Zealand dollar. Meanwhile, tourists from Australia will be able to benefit from a more favourable exchange rate with the Australian dollar probably rising against the Yen next year.
What are the key influences on the Yen?
1. Japanese Economy
The Japanese Economy has expanded since 2012 and will continue in 2018. This should support the Japanese Yen. However, local businesses are unsure whether the gradual improvements will be long-lasting and greater uncertainty can pressure the Yen.
Japanese politics has a big influence on the Yen. The Yen goes up when the elected government implements policies that help improve the economy. With Prime Minister Shinzo Abe cruising into victory in the unexpected October election and a continuation in the same economic policies which appear to be working, the Yen will likely go up.
3. Other Currencies
The US dollar (USD) can significantly influence the Yen. Generally, when the USD gets stronger, the Yen is relatively weaker and vice versa. The Yen is also seen as a ‘safe currency’, which means it will move up against other ‘higher risk’ currencies when there is more uncertainty over global economic growth.
General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.
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