Mitsubishi UFJ Financial Group: With the selling pressure of the Japanese yen diminishing, the exchange rate against the US dollar may rise to around 155

Go Ohara, head of the Foreign Exchange Trading Department at Mitsubishi UFJ Financial Group, stated that due to concerns about intervention by the Japanese authorities, the yen may rise to around 155 yen against the US dollar. The movement of the USD/JPY today is being driven by yen buying. Another factor contributing to this trend is the flattening of the US yield curve as the "Trump trade" unwinds. Holding short interest in the yen is becoming increasingly difficult. If Federal Reserve officials do not push back against expectations of rate cuts and indicate growing confidence in slowing inflation, the US dollar may further weaken. (Bloomberg)