This via the folks at eFX.

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Bank of America Global Research discusses USD/JPY outlook and maintains bullish bias through Q1 of next year.

  • "USD/JPY rally may slow down as the Japanese government attempts to cap USD/JPY's upside but the market would buy USD/JPY's dip. Carry trades are likely to weigh over JPY if the market comes to realization that the Fed is expected to hold for some time," BofA notes.
  • "USD/JPY is likely to test 150 by 1Q23 before peaking out on a US recession concern first in the middle of 2023 and correcting on the Fed's rate cuts later into 1 H24," BofA adds.


USD/JPY is not too far from 145.70, above which Japanese authorities intervened to strengthen the yen. Let's see what they can do the next time it tests given what BoA says about dips being bought and the carry trade prevailing.

usdyen intervention risk 06 October 2022