The jury is still out on US-Japan joint intervention on the yen
USD/JPY — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
Bank of America | Bullish | 149.00 |
UOB | Neutral | 163.50 |
UBS | Bullish | 150.00 |
From the original
It's been a hot minute since the joint intervention from the US and Japan on the yen currency. And as the dust continues to settle, the jury is still out on what this will all achieve. There's no denying the symbolic nature of the US stepping in to help Japan in terms of interven
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Lead — JP Morgan's recent analysis provides critical insight into the limitations of U.S. Treasury capabilities for coordinated yen intervention, suggesting that any U.S. involvement may be more symbolic than substantive. This perspective is vital as traders reassess the efficacy of U.S. intervention following recent joint actions with Japan, especially considering the disparity in financial firepower highlighted by JP Morgan. Per the full note, the U.S. Treasury's liquidity for yen interventions could potentially reach $187 billion through unconventional measures, but this would still fall short of Japan's intervention scale of approximately $35-60 billion. As market participants digest these insights, the risk of the yen coming under renewed pressure looms large, prompting a reassessment of the role of U.S. support in currency stabilization strategies.