UBS are wary of much more weakness ahead for the yen in the near term

UBS are wary of much more weakness ahead for the yen in the near term.

Citing the backdrop of the rise in JPY after the US CPI report, helped along by Bank of Japan intervention leaning into the weakness for USD/JPY, UBS cite:

• they expect the differential between US/Japan, but to do so more meaningfully later this year
• investor speculative short JPY positioning is close to a record

And say they expect further pull back drops for USD/JPY as us Data continues to indicator a soft landing for the US economy.

ICYMI:

• Heads up for a holiday in Asia today - Japanese markets are closed (no UST physical trade)