📝Downgrading Our JPY View, See USD/JPY At 146 In 3Q: J.P. Morgan

In DM, stay short USD vs. EUR, Antipodeans, CAD and

JPY, the latter as a defensive hedge. Stay overweight Scandi FX vs. EUR on cheap valuations and improved regional outlook but bearish GBP on fiscal and growth concerns. We recommended tactically taking profits on short CAD/NOK to trim risk prior to Jackson Hole/ US payrolls and tactically buy NZD/SEK in central bank RV.

In EM, we stay overweight FX across regions with EMEA the highest conviction region. In EMEA, stay overweight via HUF, ILS and ZAR. In Latam, overweight CLP and in Asia overweight MYR and THB.

In G10, only JPY is downgraded in the near-term to reflect

uncertainties around local politics. USD/JPY 3Q 146 (141), 4Q 142 (140), 2Q’26 139. Stay bullish on EUR with targets unchanged as underlying drivers are still in play; primary catalyst for next leg higher would be US data weakness/Fed pivot. EUR/USD 4Q 1.20, 1H’25 1.22.- J.P. Morgan FX Strategy