Goldman Sachs Research on the latest wave of yen-buying intervention.

"Last week's cooler inflation news seems to forecast another heat wave in this summer of carry; low volatility and dispersed levels of rates are an undeniable recipe for carry to dictate total returns. This backdrop also dampens the likelihood of success for Japan's currency intervention, which has been the central focus point for currency markets over the last few weeks," GS notes.

"We argued there was a tension between market pricing for imminent BoJ hikes and a stable Yen. So far, that tension is being resolved on the FX side, with markets quickly resetting despite officials' powerful action. We think that is largely due to this unfriendly backdrop for a low-yielding, rates-sensitive, safe-haven currency like the Yen, in contrast to more effective interventions like in 2024 that coincided with a turn in macro conditions," GS adds.