Latest Articles

What is High Octane Gasoline?

High octane gasoline, often associated with high-performance vehicles and racing, plays a crucial role in optimizing engine performance and efficiency. This article delves into...
HomeLatestBank of America Survey Suggests More Yen Weakness Likely
Advertisements

Bank of America Survey Suggests More Yen Weakness Likely

Bank of America Securities suggests that further weakness in the Japanese yen is likely, based on its latest foreign exchange and rates sentiment survey. At the time of reporting, the USD/JPY pair was trading 0.2% higher at ¥155.83, having experienced nearly a 2% increase over the week due to renewed weakness in the yen.

Advertisements

In the previous week, Japanese authorities reportedly spent around $60 billion to prevent the yen from reaching a 34-year low of ¥160.24 against the dollar.

Advertisements

The survey conducted by Bank of America Securities has consistently shown a bullish bias towards the yen since mid-2022, until recently. The analysts note a significant shift in sentiment, with investors now holding the largest short position on the Japanese yen since 2022. There is widespread skepticism regarding the effectiveness of Japan’s intervention in the foreign exchange market.

Advertisements

With the USD/JPY pair reaching new highs in April, many fund managers surveyed anticipate the pair to retest the ¥160 level, with no one predicting a reversal to ¥150.

While Bank of America Securities generally agrees with these views, they advise caution for short positions in the near term due to the recent shift in sentiment regarding the Japanese yen.

Advertisements
Advertisements