Bank of America Raises USD/JPY Forecasts to 153 and 149, Reflecting U.S.-Japan FX Intervention on August 5

USDJPY-0.41%
According to Bank of America's August 5 report, the bank raised its USD/JPY forecasts for Q3 to 153 (from 154) and Q4 to 149 (from 152), reflecting recent U.S.-Japan joint foreign exchange intervention and the Bank of Japan's hawkish stance. BofA projects the yen will appreciate approximately 6% by year-end versus the current spot rate of 158. The bank stated that recent FX market intervention "strongly supports yen strength forecasts" and expects the USD/JPY rate to likely fall below 155 in the near term, with faster BOJ rate hikes ahead.
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