J.P. Morgan has revised down its near-term outlook for the Japanese yen, citing political uncertainty, expects USD/JPY at 146 in the third quarter, compared with its previous forecast of 141projections are for the pair to ease back to 142 by year-end and 139 by the second quarter of 2026Among G10 currencies, the yen was the only one downgraded. The bank remains constructive on the euro, keeping forecasts unchanged at 1.20 for EUR/USD in Q4 and 1.22 in the first half of 2026, with a potential catalyst seen in softer U.S. data or a Federal Reserve pivot.Strategists continue to recommend being short the U.S. dollar against the euro, commodity currencies and the yen as a defensive hedge, while staying overweight Scandinavian FX versus the euro on valuation grounds. They remain bearish on sterling given fiscal and growth concernsfavours emerging-market currencies, with its strongest conviction in EMEA This article was written by Eamonn Sheridan at investinglive.com.