Cameron Crise

The joint US-Japan intervention signals a determination to defend the yen at extreme multi-decade highs (164 USD/JPY), as a weak yen hurts Japan's inflation management and JGB curve control while a strong dollar undermines US trade deficit goals. Additionally, the Bank of Japan is expected to raise rates, and speculation about GPIF shifting its asset allocation toward more JGBs could reduce foreign bond outflows and even trigger repatriation, adding upward pressure on the yen.