JPY 03 (Dec 16 - Dec 26)

[behappyalways]

Japanese officials intervened after issuing a "final warning," causing the yen to rebound from 160 to the 155 mark!
The market widely expects a possible interest rate hike in June.

日官員發"最後警告"後出手干預 日圓從160強彈至155關卡！市場普遍預期6月有機會升息｜非凡財經新聞｜20260501

https://m.youtube.com/watch?v=Uen3BxW1o6s

[behappyalways]

Japan Says It Counts Three Consecutive Days Of FX Intervention As One
https://www.zerohedge.com/markets/japan ... ention-one

[winston]

As short-sellers circle the yen, a repeat of 1997 Asian crisis looms

by Andy Xie

Japan is falling into a trap in defending its currency against the US dollar, like Thailand in 1996.

Japan’s large forex reserves make the yen a juicy target rather than deterring currency predators. Its fundamentals are weak and deteriorating, making the yen’s further decline inevitable.

Japan can’t raise interest rates aggressively to defend its currency due to its high national debt. It could fall into an inflation-devaluation spiral, greatly profiting yen short-sellers.

The yen is trading above 160 to the US dollar again, just a month after a massive government intervention.

Japan’s foreign exchange reserves stand at over US$1.3 trillion but further interventions will only cost more and be less effective, allowing short-sellers to build larger positions.

Source: SCMP

https://www.scmp.com/opinion/asia-opini ... e=homepage

[behappyalways]

Yen hits four-decade low in historic slide that’s rattled Japan
https://www.theedgesingapore.com/news/c ... tled-japan

[winston]

Traders plot worst-case scenario for yen if currency crisis hits

Some investors view Japan as a laggard in raising interest rates to combat inflation

Traders see little long-term relief from the Japanese government’s repeated warnings that it will take bold action to stem the decline.

“Without any intervention either directly in the currency or from the BOJ hiking, dollar-yen is threatening to look like my cholesterol – 180 to 205”

Hedge funds have ramped up their bearish bets on Japan’s currency last month to the most since 2017. Foreign exchange options traders also point to risks of acute yen weakness, with a 15 per cent chance dollar-yen would rise to 180 in a year’s time.

Investors still love the yen to fund carry trades – even though yes, intervention risks are lurking.

Source: Business Times

https://www.businesstimes.com.sg/compan ... risis-hits

[winston]

Former Japan FX Official Says JPY May Be Undervalued by Up to 20%

The JPY should be as much as 20% stronger than current levels, at around JPY130 per USD, a former senior Japanese foreign exchange official believed.

Tatsuo Yamasaki, former Vice Minister of Finance for International Affairs at Japan's Ministry of Finance, said in an interview with Bloomberg that he estimates the JPY is undervalued by 10%, though that may be a conservative estimate.

He said he would not be surprised at all if the USD/JPY exchange rate is around 130.

Source: AASTOCKS Financial News

https://www.aastocks.com/en/stocks/news ... -news/AAFN

[winston]

Hedge funds turn most negative on the Japanese yen since 2007

Leveraged traders boosted wagers on further losses in the currency to nearly 138,000 contracts as at Jun 30

The yen remains one of the worst performers this year among major currencies, dragged lower by a wide gap between interest rates in Japan and other nations such as the US.

Japan’s currency is also facing pressure from Prime Minister Sanae Takaichi’s huge spending plans as well as her preference for monetary easing.

Authorities had spent a record 11.73 trillion yen (US$72.7 billion) from Apr 28 to May 27 to defend the yen.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... e-yen-2007

[winston]

Yen rises as Japan encourages pension funds to invest in domestic assets

The yen bounced on Friday (Jul 10) on news that Japan plans to encourage pension funds to increase their holdings of domestic financial assets.

The government is pursuing measures that would include the Government Pension Investment Fund (GPIF), one of the largest pension funds in the world, to make “substantially greater investments in Japanese financial assets.”

Currently, 50 per cent is allocated to foreign investments in their strategic allocation, and a shift in that would definitely create a lot more inflows for domestic assets ... so that’s supportive of the currency and at the same time, also supportive of equities and bonds,”

Source: Reuters

https://www.businesstimes.com.sg/compan ... tic-assets

[behappyalways]

Japan Launches Strategy to Save the Yen! Plans to Tax-Exempt Government Bonds, Pension Fund Poise...
https://m.youtube.com/watch?v=k9zNPpQiVt8&t=1s

[behappyalways]

Bank Of Japan Confirms Yen Intervention, Fed Conducted 'Rate Check'
https://www.zerohedge.com/markets/japan ... peculation