Institution: If the Japanese Yen falls below 162 against the US Dollar, it may quickly drop to 170.

Hideki Shibata, a senior interest rate and forex strategist at Tokai Tokyo Intelligence Laboratory, wrote in a report that it is best to be prepared for the US dollar to quickly surge to 170 against the Japanese yen as many buy USD and sell JPY orders are linked to options near the 162 level. If 162 is breached, the risk of rapid exchange rate fluctuations will increase. Real interest rates are likely to continue to remain negative, making it difficult for the yen to appreciate. Even amidst the background of the US detaining the Venezuelan president triggering safe-haven sentiment, the yen continues to weaken; partly due to the fact that the yen net position in the IMM currency futures market is essentially neutral. From a speculative position perspective, it is unlikely that the situation in 2024 where the yen appreciated due to covering of short yen positions will occur again.