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ForexMedium•18 February 2026•

1 min read

JPMorgan Raises AUD and NZD Forecasts, Targets USD/JPY at 164 Amid USD Pressure

Golden-orange image with oil derricks, barrels, 'OIL > 102', and upward arrows. 'USD CAD' is central. Two eagles, 'FED HAWK', and 'INTEREST RATES TIGHTENING' with downward arrows are on the right. Fin

JPMorgan has revised its foreign exchange forecasts, raising outlooks for the Australian and New Zealand dollars against the US dollar. The bank remains notably bearish on the Japanese yen, projecting the USD/JPY pair to hit 164 by the fourth quarter of this year. According to the report, increased currency hedging by foreign investors looking to protect their US equity holdings is creating significant downward pressure on the greenback. The removal of potential Federal Reserve rate hikes from the table has further diminished the yield advantage previously enjoyed by the US dollar. Additionally, a strategic rotation of global investment portfolios away from US-centric assets is providing a tailwind for commodity-linked currencies. These updated projections highlight a shifting institutional sentiment as macro conditions and technical flows weigh on the USD's performance.