Eurizon expects that the U.S. and Japan will support the market, potentially pushing the yen up to 125, urging shorts not to stubbornly hold out.

Eurizon SLJ Capital CEO Stephen Jen believes that the joint effort by the United States and Japan to support the yen marks "a watershed moment" that will prevent it from falling back to a 40-year low against the dollar. "The dollar-yen probably peaked, as neither the U.S. nor Japan will give up or yield to the market," he and the company's economist and portfolio manager Joana Freire wrote in a report on Tuesday. "Resistance is futile."