Limited Yen Rebound Expected Despite Potential Intervention, Say Societe Generale Strategists

Societe Generale strategists have indicated that even with intervention efforts to support the yen, its rebound potential remains limited. According to Jin10, discussions between U.S. and Japanese officials have considered coordinated intervention following U.S. exchange rate checks, though actual intervention might be necessary to shift yen sentiment. Despite these considerations, without a change in relative growth prospects, the USD/JPY exchange rate is unlikely to see a significant decline. Data from the London Stock Exchange Group shows the USD/JPY rate recently reached a two-week high of 156.82. Local media reports suggest Japanese Prime Minister Sanae Takaichi has reservations about further interest rate hikes, while the government has nominated two scholars perceived as favoring accommodative policies to the Bank of Japan's board.