JPMorgan Warns USD/JPY May Fall to 142-146
On September 4, JPMorgan warned that if the USD/JPY falls below 155, approximately 16 trillion to 17 trillion yen, equivalent to about 102.6 billion USD, in outstanding yen shorts could be forced to cover, driving up the yen's value. Theoretically, the USD/JPY could fall to the 142-146 range. Recent price movements indicate that large-scale yen shorts may not have been fully cleared, and if the USD/JPY drops below 155, the risk of selling will increase, potentially leading to a stronger yen than the market expects. Currently, the USD/JPY touched 160.39 earlier this week before retreating to around 155.30, with the yen expected to rise about 2.7% against the dollar this week, marking its best performance since July. The yen's strength is driven by multiple factors, including rising market expectations for further interest rate hikes by the Bank of Japan, speculative short covering, and increased demand for currency hedging from domestic Japanese investors. The swap market has almost fully priced in a 25 basis point rate hike by the Bank of Japan this month, with an estimated 80% probability of another hike in December. JPMorgan believes that market expectations for adjustments in asset allocation by the Bank of Japan and GPIF may be excessive and does not see a significant probability of the USD/JPY falling below the 155-165 range. Meanwhile, Japan's top foreign exchange official, Jun Mimura, expressed dissatisfaction with the current yen trend, stating that Japan is prepared to continue responding to fluctuations in the currency market. Bank of America is inclined to short the USD/JPY with a target of 149, while TD Securities maintains a moderately bearish outlook on the dollar for the remainder of the year. The market is awaiting U.S. non-farm payroll data and next week's CPI data to assess the Federal Reserve's future policy path.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

Robinhood Stock Rises 16.57%, Multiple Investment Banks Upgrade Ratings

Zoth Launches Tokenization Service for U.S. Stocks via Zivolt

BCRA: Santiago Bausili defended the reform of the Organic Charter and the possibility of using gold as collateral

BCRA Strengthens Controls Against Fraud in Electronic Payments

Pocket Bitcoin Reports Customer Data Breach Affecting Over 5,000 People

Tether Reports $1.3B Q2 Profit As Excess Reserves Reach $5.2B

BCRA Reserves Jumped Over $300 Million: What’s Behind It

Reform UK received 75% of Q2 donations from BitMEX co-founder

Circle Reserve Attestation Shows USDC Backing Above Circulating Supply

Russia mandates major banks and businesses to accept digital ruble

Credit card usage falls 10.1% in August due to rising delinquency

The Myth of Short Squeeze in Stock-Paired Meme Coins: Why It Is Destined to Fail?

Global Lineup Expands for 'GWDC 2026 KOREA' Featuring Koo Yun-cheol, Min Byung-deok, Justin Sun, Bithumb, and Naver

Creators Speak | Is a New Round of Crypto Bull Market Coming?

USDT Recharge, Multi-Currency Exchange, Virtual Credit Cards: What Are the Criminal Boundaries of Web3 Payment Platforms?

Wyoming Adds Chainlink's Reserve Verification Feature to State-Issued Stablecoin

Increase in Crypto-Backed Lending Amid Bear Market, A Funding Alternative to Selling = CryptoQuant

Token Securities to Expand Beyond Fractional Investments to Stocks, Bonds, and Funds Starting February Next Year

Betting on the Frontier: Why the Best Crypto Investments Arise in Bear Markets

Ondo Finance Requests SEC and CFTC to Lift Ban on Perpetual Futures Trading of U.S. Stocks

Uniswap Labs Bought Pons Token for 'Long-Term Alignment'

Securitize and Socios Partner to Tokenize Shares of Professional Sports Teams

The fintech industry debated its future, between evolution and regulation: "The ecosystem is here to stay"

Europe Launches MTG-I2 to Accelerate Storm and Fire Monitoring

Sweden aims for four BWRX-300 reactors with a capacity of 1.2 GW

U.S. House Shortens September Session, Concerns Over Time for Clarity Bill Discussion

Bitget in Talks with Financial Giants like BlackRock to Explore Collaboration in Asian Market

Trading Terminals Post First $1 Billion Day Since January 2025

SEC Approves Options Trading For WisdomTree Bitcoin Fund









