crashbashtablegame| Bank of America: Continued intervention is needed to keep USDJPY below 155

Bank of America saidcrashbashtablegame, Japanese authorities may have to continue to intervene in the foreign exchange market to curb the rise of the dollar against the yen.

In the absence of disappointing news on the U.S. economy, Japan's Ministry of Finance may have to continue foreign exchange intervention if the U.S. dollar/yen is to remain below 155 to buy time before the Bank of Japan raises interest rates,"strategists such as Shusuke Yamada and Izumi Devalier wrote in the report.

Analysts expect the Bank of Japan to raise interest rates starting in the third quarter of 2024.

crashbashtablegameThey wrote that a weak yen may not be enough to change the Bank of Japan's policy, adding that upward pressure on the dollar against the yen may continue into the third quarter.

"Hawkish surprises", such as the Bank of Japan's admission that policies are too loose, a June interest rate hike or a terminal interest rate higher than market expectations, may be necessary conditions to properly boost the yen.