We've reached an impasse on the Japanese yen trade
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
What a strange time we live in. Treasury Secretary Scott Bessent obviously leaked this picture last week ahead of yen intervention, then actually followed through late in the day. I don't know what the point of leaking it was but the market isn't exactly sure what to do next. The
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4 itemsTreasury Secretary Bessent appears to endorse yen intervention
Bessent heads to Tokyo pressing Japan on yen weakness and intervention
Lead — The desk interprets US Treasury Secretary Bessent's recent visit to Tokyo as a pivotal moment in the ongoing debate over Japan's monetary policy and currency management. Bessent's preference for Bank of Japan (BOJ) rate hikes over yen intervention highlights the growing concern regarding the impact of Japanese financial flows on US Treasury yields. Per the full note [source], Bessent's advocacy for rate hikes comes amid speculation of a potential BOJ tightening as early as next month, which could significantly influence market dynamics. The desk notes that the current consensus target for USD/JPY reflects a cautious stance amidst these developments.
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