Strategists are cautiously optimistic about the Japanese yen's potential rebound after experiencing declines for two years.
There is growing anticipation that the Bank of Japan's interest-rate hikes, along with expected cuts from the Federal Reserve, could drive the yen's recovery to approximately 130 against the dollar.
However, analysts caution that there will be significant volatility in the yen throughout 2024, which complicates predictions.
The potential return of Donald Trump to the White House introduces another layer of uncertainty regarding Fed policy and its impact on global markets.