Bank of America Maintains Year-End USD/JPY Forecast at 149

Bank of America maintains its year-end forecast for the dollar-yen rate at 149, noting that while both currencies are currently supported by fundamentals, short-term volatility is likely to persist. However, the bank warns that downside risks are increasing. Key factors driving potential weakness in the dollar-yen pair include the U.S. midterm elections, the possibility of Japanese authorities intervening in currency markets if the rate breaks above 160, and investors' excessive concentration in long equity positions.