According to Bank of America Securities’ recent survey, there’s a likelihood of further weakness in the Japanese yen. This sentiment contrasts with the consistently bullish yen bias observed since mid-2022. Despite Japanese authorities spending nearly $60 billion to bolster the yen, it has returned to trading at ¥155.83 against the dollar. Investors, reacting to USDJPY breaching new highs in April, have shifted to the largest JPY short position since 2022, displaying skepticism about Japan’s FX intervention effectiveness. Most fund managers expect USDJPY to retest ¥160, indicating a lack of anticipation for a reversal to ¥150. However, the sudden shift in sentiment towards JPY suggests caution for short positions in the near term, according to the bank.
Published on 17/05/2024
By Michael S.
![](https://thunderxpay.com/wp-content/uploads/2024/05/Poster-300x300.jpg)