The Current Level of USDJPY: Stable but Unsustainable

Stephen Jen and Joana Freire examine why USDJPY near 160 may be stable for now but unsustainable, with implications for the yen, Japan, carry trades, oil prices and intervention risk.

Stephen Jen and Joana Freire argue that USDJPY near 160 may appear stable, but is difficult to sustain. Their latest note examines Japan’s negative real rates, oil-price exposure, Ministry of Finance intervention risk, yen undervaluation and the view that the next major move in USDJPY is likely lower.

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