Claudio Wevill, FX strategist at J. Safra Sarasin, said recent signals from Bank
of Japanese officials suggesting a quicker pace of rate hikes are reversing the
market’s long-held view of BoJ inaction that had weighed on the yen. The yen has
rebounded over the past week after prolonged weakness, but Wevill said headwinds
— strong U.S. economic data, elevated energy prices and persistent concerns
about Japan’s debt sustainability — mean the current rebound may lack a solid
foundation.
