After a historic US-Japan joint intervention, markets are watching whether the yen can sustain gains and drive USD/JPY below the 155 level. Strategists say 155 is the key test: April–May interventions briefly pushed USD/JPY toward 155 before the pair reversed, underscoring that official action may only buy time. BofA Securities’ chief Japan FX and rates strategist Shusuke Yamada warned that failure to breach 155 could prompt market views that policymakers have exhausted tools and that continued

After a historic US-Japan joint intervention, markets are watching whether the yen can sustain gains and drive USD/JPY below the 155 level. Strategists say 155 is the key test: April–May interventions briefly pushed USD/JPY toward 155 before the pair reversed, underscoring that official action may only buy time. BofA Securities’ chief Japan FX and rates strategist Shusuke Yamada warned that failure to breach 155 could prompt market views that policymakers have exhausted tools and that continued breaks below 155 would flip market logic from buy-the-dip to sell-the-rally. Wells Fargo strategist Chiddu Narayanan said a move below 155 would raise the risk of a yen short squeeze; even partial covering could generate significant yen buying and, as leveraged accounts cut exposure, USD/JPY could retrace deeper, possibly toward 152.