03/08/24

We've already seen dollar/yen come down from the peak of 2023 and I do not think that the Bank of Japan really focuses on any particular levels there. I think they're more worried about a rapid pace of deacceleration in the yen, which hasn't been the case lately, and that's why we've seen a certain lack of intervention efforts from the Japanese authorities this year. I think the Japanese authorities look comfortable around that 150 level in dollar/yen as well. And the outlook for the Fed to cut rates this year means that the Japanese yen can rally and that continues to give them some level of comfort as well.

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