J. Safra Sarasin analyst Claudio Wewel said the recent yen rebound looks fragile. As markets price further rate hikes from major central banks, USD/JPY has risen to around 158, reviving speculation of Japanese FX intervention. Wewel expects USD/JPY could linger near the 160 area in the short term, saying the Bank of Japan’s signal of accelerated tightening may not be enough to sustain a durable yen recovery. He warns the yen still faces headwinds from stronger US macro data, elevated energy pric

J. Safra Sarasin analyst Claudio Wewel said the recent yen rebound looks fragile. As markets price further rate hikes from major central banks, USD/JPY has risen to around 158, reviving speculation of Japanese FX intervention. Wewel expects USD/JPY could linger near the 160 area in the short term, saying the Bank of Japan’s signal of accelerated tightening may not be enough to sustain a durable yen recovery. He warns the yen still faces headwinds from stronger US macro data, elevated energy prices and concerns over Japan’s debt sustainability, and judges the BOJ may still be lagging other G10 central banks based on recent market reaction.