US-Japan Intervention Marks Yen Watershed, Eurizon Says
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The US and Japanese effort to prop up the yen is a watershed moment that will keep it from sliding back to its four-decade low against the dollar, according to Eurizon SLJ Capital. Chief Executive Stephen Jen and economist Joana Freire wrote that dollar-yen has most likely peaked, as neither the US nor Japan would give up or concede to the market. The intervention marked the first time the US and Japan swooped in to buy the yen since 1998, snapping a steady weakening driven by higher US interest rates. Eurizon expects the yen to eventually rally toward 125 to the US dollar, though no specific time frame was given.
