At 10:25 ET (14:25 GMT), USD/JPY traded 0.2% higher at ¥155.83, with the pair having gained just under 2% this week as yen weakness returned.
Japanese authorities are seen having spent almost $60 billion the previous week pulling the yen away from a 34-year-low of ¥160.24 versus the dollar.
The bank’s survey has shown a consistently bullish yen bias since mid-2022, analysts at BOA Securities said, until now.
With USDJPY breaching new highs in April, investors have flipped to the largest JPY short since 2022, and there is a deep scepticism around the effectiveness of Japan’s FX intervention.
The bank said the majority of fund managers polled expect USDJPY to retest ¥160, with no one expecting a reversal to ¥150.
“While we generally share these views, the volte-face on JPY perhaps warrants near-term caution for shorts,” the bank added.
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