BofA expects the yen to strengthen 6% by year-end after coordinated currency intervention and a likely BOJ rate hike in September.
Bank of America has lowered its year-end USD/JPY forecast to 149 from 152, citing coordinated currency intervention and expectations of a Bank of Japan rate hike. The revision reflects growing confidence that recent yen gains are sustainable rather than temporary, with a roughly 6% appreciation projected by year-end.
The bank’s prior forecast had targeted 152, but intervention efforts and a potential September BOJ move have shifted expectations. Analysts warn that without faster monetary tightening, the yen’s recent gains could reverse, undermining intervention credibility.
USD/JPY currently trades near 158, and BofA’s call suggests sustained downward pressure on the pair. Markets will closely watch BOJ signals in the coming weeks for confirmation of a September rate adjustment.