Analysts warn US-Japan intervention failed to sustainably boost JPY demand, citing weak structural support and reliance on macro growth.
The GBP/JPY pair recovered early losses to trade near 212.25 in European trading, as the Yen’s recent gains falter. Markets doubt the durability of coordinated US-Japan intervention, which provided only short-term relief without increasing foreign JPY holdings.
Strategists note investors remain net long JPY but at levels well below early 2026, with exposure unlikely to rebuild without Bank of Japan tightening, fiscal reforms, or structural changes. Japanese equities lack support, while demand for government bonds remains marginal.
Analysts argue a sustained Yen rally depends on improved Japanese growth forecasts, not policy moves. Rate hikes alone are insufficient without a stronger macroeconomic outlook.