Goldman Sachs Research discusses JPY outlook and the scope for another round of JPY intervention by Japan's MoF.

"This past week saw USD/JPY trade up close to 162, its highest level since July 2024, when the MoF subsequently intervened..Even with the risk of additional intervention still elevated, the risk that markets continue to press a more hawkish Fed leaves JPY funding relatively more attractive than before. Because as long as Fed expectations are shifting, JPY should be a lower vol funder than the other low-yielders; it tends to have a more muted response when equities and yields are moving in opposite directions," GS notes.

"Overall, a backdrop of higher US yields, low recession odds, as well as lingering domestic fiscal risks alongside only gradual BoJ hikes (which reportedly will come with even greater resistance from the administration than before, given its plan to call for the BoJ to help bolster demand) means that the upward pressure on USD/JPY should persist- as long as policymakers allow it," GS adds