According to Jinshi Data, Go Ohara, head of Mitsubishi UFJ's foreign exchange trading department, said the yen could rise to nearly 155 against the dollar as the market worries that Japanese authorities will continue to intervene.
USD/JPY's downward move today was driven by yen buying as the global stock market sell-off triggered yen buying. The move was also driven by the flattening of the US yield curve as the "Trump deal" unravels.
It is becoming increasingly difficult to hold short yen positions. If Fed officials do not lower their expectations for rate cuts and signal more confidence in slowing inflation, the dollar could weaken further.
