Analysts: US-Japan Joint Intervention Raises Risks for Yen Short Sellers, but Sustained Yen Appreciation Still Needs Fundamental Support

: Multiple market analysts have stated that after the US joined Japan in intervening in the yen, shorting the yen now carries higher risks.Analysts pointed out that the joint US-Japan action has enhanced the credibility of the authorities' efforts to stabilize the yen, making it more difficult for the market to persistently bet against the currency. However, relying solely on currency intervention is unlikely to change long-term trends. Sustained yen strength will still require fundamental support, such as further policy tightening by the Bank of Japan, a decline in US yields, or an improvement in Japan's fiscal outlook. Some analysts believe that a stronger yen could put pressure on Japan's export-dependent companies and stock market, while if the intervention falls short of expectations, it could also raise concerns about further yen depreciation. (Bloomberg)