Dollar Peaks Against Yen as Eurizon Predicts 20% Gain

Eurizon SLJ Capital's chief executive Stephen Jen predicts that the dollar has peaked against the yen following the joint US-Japan intervention. The firm believes the yen will reach 125 per dollar, a gain of over 20% from current levels.

The market is not yet reacting to this prediction, with the yen falling 1% on Monday to 159.27 per dollar, making it the weakest among major currencies.

Jen's 'dollar smile' theory suggests that the dollar rises during US booms and global crises but falls in between. He believes both governments have spent real money on defense and cannot afford to lose.

The recent intervention saw Washington and Tokyo spend $87 billion buying yen, their first joint purchase since 1998.