--- title: "Wells Fargo: Unlikely to Intervene Before BOJ Meeting Unless USD/JPY Surges Past 162" type: "News" locale: "en" url: "https://longbridge.com/en/news/289214964.md" description: "The market has largely priced in the expectation of a 25-basis-point rate hike by the Bank of Japan (BOJ) in June. Wells Fargo believes that the BOJ needs to at least \"credibly signal further rate hikes with a hawkish stance\" to provide stronger support for the yen. The USD/JPY exchange rate is currently hovering near the 160 level, a threshold that previously triggered record-breaking foreign exchange intervention by the Japanese government" datetime: "2026-06-09T15:57:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289214964.md) - [en](https://longbridge.com/en/news/289214964.md) - [zh-HK](https://longbridge.com/zh-HK/news/289214964.md) --- # Wells Fargo: Unlikely to Intervene Before BOJ Meeting Unless USD/JPY Surges Past 162 Wells Fargo stated in a research report on Tuesday that Japanese authorities are unlikely to enter the foreign exchange market to support the yen before the Bank of Japan (BOJ) meeting on June 16, unless the USD/JPY experiences a **"sharp surge and breaks above 162."** Chidu Narayanan, Chief Strategist for Asia Pacific at Wells Fargo, wrote in the report that the Japanese Ministry of Finance possesses ample capacity for intervention; **however, foreign exchange intervention alone can only slow down and mitigate currency volatility, not alter its underlying trend.** With the recent strengthening of the U.S. dollar and the widening interest rate differential between the U.S. and Japan, yen weakness may persist in the short term, and foreign exchange intervention will not change the direction of the USD/JPY trend. Narayanan believes that a rate hike in June alone is insufficient to halt the yen's downward trend; **the BOJ needs to at least "credibly signal further rate hikes with a hawkish stance" to provide stronger support for the yen.** ## Hedge Funds Bet That a June BOJ Rate Hike Will Fail to Stop the Yen's Continued Weakness Ahead of the BOJ's policy meeting in June, hedge funds are bracing for further yen weakness. They believe that even another rate hike will do little to reverse the structural depreciation pressure facing the yen. Given that the market has largely priced in the expectation of a 25-basis-point rate hike this month, these "agile funds" seeking quick profits are increasingly shifting their core focus to: **Whether the BOJ has the ability to initiate a sustainable tightening cycle.** Fivestar Asset Management and Palinuro Capital currently hold short positions in the yen, while Simplex Asset Management plans to tactically establish short yen options in stages if the yen rebounds above 159 yen per dollar. Nevertheless, the risk of intervention remains ever-present. **The USD/JPY exchange rate is currently hovering near the 160 level, a threshold that previously triggered record-breaking foreign exchange intervention by the Japanese government.** Some investors firmly believe that the BOJ's next tightening move will be insufficient to curb the decline of the yen and Japanese Government Bonds (JGBs); meanwhile, other investors are uncovering trading value in JGBs of certain maturities. ### Related Stocks - [WFC.US](https://longbridge.com/en/quote/WFC.US.md) - [WFC-D.US](https://longbridge.com/en/quote/WFC-D.US.md) - [WFC-L.US](https://longbridge.com/en/quote/WFC-L.US.md) - [WFC-Y.US](https://longbridge.com/en/quote/WFC-Y.US.md) - [WFC-C.US](https://longbridge.com/en/quote/WFC-C.US.md) - [WFC-Z.US](https://longbridge.com/en/quote/WFC-Z.US.md) - [WFC-A.US](https://longbridge.com/en/quote/WFC-A.US.md) ## Related News & Research - [Forex Seasonality – June 2026: Will EUR/USD Rally Back toward 1.18?](https://longbridge.com/en/news/288750401.md) - [Weak yen, hawkish Fed adds to pressure on BOJ to accelerate hikes](https://longbridge.com/en/news/289170745.md) - [MSIM: JGBs look more attractive in the 'early innings' of yen stability and higher rates](https://longbridge.com/en/news/288804475.md) - [13:00 ETOtto Aerospace Advances the Phantom 3500 Program with FAA Certification Basis Milestone](https://longbridge.com/en/news/289084378.md) - [BOJ to consider pausing bond taper next fiscal year, sources say](https://longbridge.com/en/news/289141701.md)