Bank of America Securities has upgraded its view on the yen to neutral from bearish, citing improving structural flow dynamics, even as the currency weakens toward 160 per dollar. Strategist Shusuke Yamada also cut his end-2026 forecast for USD/JPY to 152 from 157. BofA said a bullish yen outlook would require policy or market shifts, including USD/JPY rising to 160, Japan’s 10-year JGB yield nearing 3%, or Brent crude falling below $90 per barrel. The bank also noted that suspected FX intervent

Bank of America Securities has upgraded its view on the yen to neutral from bearish, citing improving structural flow dynamics, even as the currency weakens toward 160 per dollar. Strategist Shusuke Yamada also cut his end-2026 forecast for USD/JPY to 152 from 157. BofA said a bullish yen outlook would require policy or market shifts, including USD/JPY rising to 160, Japan’s 10-year JGB yield nearing 3%, or Brent crude falling below $90 per barrel. The bank also noted that suspected FX intervention totaling as much as ¥10 trillion ($63 billion) may have taken place between late April and early May. Despite persistent weakness driven by rate differentials, BofA highlighted improving fundamentals, including narrowing bank loan-deposit gaps, rising real rates, and stronger Japanese equity performance versus US and European markets, which could support capital inflows and stabilize the currency over time.