OCBC: Intervention risk caps yen losses as BoJ hike odds rise

OCBC strategists Sim Moh Siong and Christopher Wong point out that market pricing for a September Bank of Japan rate hike has risen sharply, yet the Japanese yen has shown only a limited reaction.

They argue that a sustained yen recovery would likely require a clearer commitment to faster policy tightening from the BoJ. Without that, the currency's response may remain muted.

At the same time, intervention risk is seen capping further losses against the US dollar, limiting downside for the yen.