Bank of America lowers its year-end USD/JPY target after coordinated US-Japan FX intervention strengthens yen defense.
Bank of America has revised its USD/JPY year-end forecast to 149 from 152 following coordinated FX intervention by US and Japanese authorities. The move aims to drive the pair below 155 in the short term and restore yen stability long term.
The firm previously set a Q3 2026 target of 154, now adjusted to 153. The intervention, acknowledged by both governments, removes prior constraints on yen support and may signal faster Bank of Japan rate hikes, with September under watch.
BofA highlights the intervention’s signaling effect, despite limited US yen-buying volume, as a key driver for the revised forecast. The action is expected to bolster the yen’s credibility and reduce volatility.