The Yen Supertanker Is Turning: Why USD/JPY 150 Could Break Global Markets

USD/JPY moving toward 150 is starting to look less like a drifting exchange-rate story and more like a potential macro turning point. For two years, the currency market largely ignored widening rate differentials, but that stance may be changing as Japan’s central bank moves toward faster tightening. The outlook is also supported by political room for a stronger yen and a reversal in Japanese capital outflows, according to TS Lombard. While intervention may have contributed to the initial shift, the firm argues that repatriation flows are what could sustain a move toward the psychologically important 150 zone.