Home ForexArticles Further Yen Weakness Likely – BOA Securities Survey By Investing.com

Further Yen Weakness Likely – BOA Securities Survey By Investing.com

by SuperiorInvest

Investing.com – Further weakness in the Japanese yen appears likely, according to Bank of America Securities, citing its latest study on sentiment in foreign exchange rates and exchange rates.

At 10:25 ET (14:25 GMT), it was trading 0.2% higher at ¥155.83, and the pair had gained just under 2% this week as yen weakness returned.

Japanese authorities are seen spending nearly $60 billion in the past week to lift the yen from a 34-year low of ¥160.24 against 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 hitting new highs in April, investors have resorted to the biggest short on JPY since 2022, and there is deep skepticism around the effectiveness of Japan's currency intervention.

The bank said most fund managers surveyed expect the USDJPY to retest 160 yen, and no one expects a reversal to 150 yen.

“While we generally share these views, the sharp turnaround in the JPY may warrant near-term caution for short positions,” the bank added.

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