Yen weakness back in focus as Katayama, Ueda head to G20 meeting
EUR/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
Morgan Stanley | Bullish | 1.2150 |
UOB | Bullish | 1.1800 |
ING | Bullish | 1.1700 |
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The yen's slide back toward 160 per dollar, despite last month's coordinated intervention, keeps currency markets alert to any signal that Tokyo and Washington could act again. Katayama's comment that the joint statement with Bessent "still lives" suggests officials want to keep
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The desk interprets the recent reaffirmation of currency cooperation between Japan and the US as a strategic move to bolster the yen amid significant intervention efforts. Per the full note [source], Japan's Finance Minister Katayama confirmed that the country has spent approximately $63.5 billion defending the yen, aligning its actions with a joint statement from last September that allows for intervention against excessive volatility. This backdrop suggests a coordinated approach to stabilizing the currency, which could deter further bearish sentiment. However, the lack of clarity regarding the Bank of Japan's (BOJ) monetary policy direction remains a critical factor, especially as some policymakers hint at potential rate hikes as early as June, intensifying market sensitivity to future signals.
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