Kengo Suzuki, a senior strategist in Mizuho Investor Relations' investment analysis division, said the US economy is mainly being supported by the artificial intelligence (AI) boom but is already showing signs of slowing, and he expects the yen to rise to around 153 against the US dollar by the end of the year.

Suzuki said the dollar's current strength is "excessive," and he expects the yen to climb to around 150 against the dollar by the end of March 2027.

Given that US mortgage rates are above 7%, the US economy may gradually begin to slow within six months, which would in turn limit the dollar's upside room.

If the yen exchange rate approaches 159, the bullish yen view may need to be reassessed, and the 158.5 level, where the 200-day moving average sits, will draw attention.

A consensus between Japan and the United States on restraining yen depreciation is significant; if the yen continues to weaken and falls below 160, intervention expectations are expected to curb shorting of the yen.