More Yen Weakness Likely – BOA Securities Research by

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LYNXMPED6618D M – Further weakness in the Japanese yen appears likely, according to Bank of America Securities, citing its latest survey of currency and interest rate sentiment.

At 10:25 ET (14:25 GMT), it was trading 0.2% higher at ¥155.83, with the pair gaining just under 2% this week as yen weakness returned.

Japanese authorities spent nearly $60 billion last week to pull the yen away from a 34-year low of ¥160.24 against the dollar.

The bank’s research shows the yen has been consistently bullish since mid-2022, BOA Securities analysts say, until now.

With the USDJPY breaking new highs in April, investors have moved into the largest short position in the JPY since 2022, and there is deep skepticism about the effectiveness of Japan’s currency intervention.

The bank said the majority of fund managers surveyed expect USDJPY to retest ¥160, while none expect a reversal to ¥150.

“While we generally share these views, the near-term volatility in the JPY may warrant caution on shorts,” the bank added.

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