Bank of America Global Research discusses the latest wave of yen-buying intervention and USD/JPY outlook into year-end.

The current yen-buying intervention framework involves four key players: Japan's Ministry of Finance (MoF), the US Treasury, the Takaichi administration, and the Bank of Japan (BoJ). Yet their degree of alignment is unclear given differences in mandates and policy objectives.

"Policy options to support the yen include FX intervention by the Japanese and US authorities, BoJ rate hikes, and fiscal or broader economic measures by the government. Intervention can also affect the incentives and effectiveness of other policy tools.

There is also growing speculation that Prime Minister Takaichi could reshuffle the cabinet by September. It is unclear whether and how intervention developments would influence personnel decisions, but political considerations cannot be ruled out," BofA notes 

"We remain constructive on JPY and revised down USD/JPY forecasts this month, expecting USD/JPY at 149 (152 previous) for end-2026," BofA adds.