Michael Nizad, head of multi-asset and portfolio management at Edmond de
Rothschild Asset Management, said the yen’s weakness is excessive given Japan’s
strong fundamentals and could push USD/JPY toward 170 within three months absent
intervention. USD/JPY hit 162.83 on Wednesday, a 40-year high, and was trading
at 161.76. Nizad said such depreciation would boost Japanese industry
competitiveness and would be unacceptable to the Trump administration, so he
expects coordinated foreign-exchange intervention by the Bank of Japan, Federal
Reserve and European Central Bank in H2. He added that any yen appreciation
without intervention would likely be short-lived; a successful intervention
could compress USD/JPY to around 155, making the near-163 move the peak.
