How far can the yen's reversal go? Goldman Sachs: Structural recovery is "just getting started," while Bank of America forecasts a rise to 149 by year-end.

Goldman Sachs assesses that the correction of the yen's long-term structural undervaluation may have only just begun.

wallstreetcnSep 5 14:00

Bolstered by dual expectations of interest rate hikes and intervention, the yen surged for two consecutive days, retesting the 156 level and marking its strongest performance since the joint U.S.-Japan intervention!

After two consecutive days of sharp gains, the yen has returned to around 156, with markets simultaneously pricing in a Bank of Japan rate hike and remaining wary of renewed intervention by Japanese authorities. As meetings of the U.S. and Japanese central banks approach, along with Japan’s extended holiday period, analysts warn that the risk of fresh intervention will rise significantly if the USD/JPY exchange rate revisits the 160 level.

wallstreetcnSep 3 19:25

As Japanese Capital Returns Home: Is the Break of the 3% Threshold in JGB Yields Reshaping Global Capital Flows?

① As Japan’s benchmark 10-year government bond yield breaks through the 3% barrier for the first time in three decades, higher returns are beginning to attract Japanese capital held overseas to flow back home; ② This could reverse the once-stable trend of Japanese capital inflows into global markets...

cls.cnSep 3 10:46

The yen surged suddenly amid renewed rumors of Japanese intervention, prompting a rebound in gold and silver prices.

The yen strengthened sharply on Wednesday, while the U.S. Dollar Index recorded its largest intraday decline since August 21, with spot gold approaching $4,400. Rumors circulated that Japanese authorities had intervened again, but traders viewed the magnitude of the gain as insufficient to confirm intervention.

Golden10 DataSep 2 22:57

Following Kazuo Ueda's hint at a September rate hike, a Bank of Japan board member stated that the magnitude of the increase would not necessarily be 0.25%.

Hajime Takada, a hawkish member of the Bank of Japan's Policy Board, has added another variable to the outlook for the September policy meeting. While an interest rate hike is highly probable, the magnitude may not align with the market's inertial expectation of 0.25 percentage points.

wallstreetcnSep 2 14:25

Key highlights of the meeting between Bessent and Kazuo Ueda: Consensus reached on accelerating rate hikes, signaling a potential end to "Abenomics."

U.S. Treasury Secretary Bessent stated that "Abenomics may have reached its end" and hinted at support for the Bank of Japan's rate hikes to stabilize the yen, drawing significant attention to his upcoming meeting with BOJ Governor Kazuo Ueda during the G20 summit. Market expectations point to a consensus on addressing the yen's undervaluation and accelerating rate hikes, fueling speculation of a September rate hike in Japan and pushing the neutral interest rate indicator close to the 3% threshold.

wallstreetcnSep 1 16:58