BofA Lifts Yen to Neutral, Cuts End-2026 Dollar-Yen View to 152

4 articles · Updated · Bloomberg · May 20

BofA Securities raised its yen stance to neutral from bearish and lowered its end-2026 dollar-yen forecast to 152 from 157, even with the currency drifting back toward 160 per dollar.
Improving structural flow dynamics drove the shift, while vulnerabilities in other major currencies made the yen look less exposed on a relative basis.
Strategist Shusuke Yamada said BofA sees three catalysts that could eventually push the bank from neutral to outright bullish on the yen.
The change signals a softer dollar-yen outlook over the next two years, though BofA stopped short of a bullish call for now.

As Tokyo defends the yen, is it on a collision course with its key ally, the United States?

Can Japan's economic reforms overpower the geopolitical pressures currently crushing the yen?