ING analyst Chris Turner warns USD/JPY could weaken if Japan follows South Korea's growth trajectory, where the Bank of Korea recently raised its 2026 GDP forecast to 3.3% from 1.8%.
ING's Chris Turner argues Japan could deliver upside growth surprises, mirroring South Korea where the Bank of Korea raised 2026 GDP forecast to 3.3% from 1.8%. Stronger Japanese growth plus loose fiscal policy could bring tighter Bank of Japan policy and a much weaker USD/JPY. This is a forward-looking analyst scenario, not confirmed data, which limits conviction.
ING strategist Chris Turner suggests Japan may mirror South Korea's recent economic performance, potentially pressuring the USD/JPY pair. By leveraging its role in the chip manufacturing supply chain and loose fiscal policy, Japan could see growth surprises that force the Bank of Japan toward tighter monetary policy.
Because Japan could outpace growth expectations the way South Korea did – the Bank of Korea lifted its 2026 GDP forecast to 3.3% from 1.8% – and Japan supplies chip manufacturing equipment. Stronger growth and loose fiscal policy could push the Bank of Japan toward tighter policy, weakening USD/JPY.
No. The article only presents ING's view that Japan may follow South Korea's chip-led upswing; no new Japanese GDP figure or BoJ decision is reported.