Yen Rally Fails to Convince: Experts See Risk in Short-Term Gains

The yen's recent rally may be driven by optimistic bets on tightening and GPIF changes, but experts at ING Think have their doubts about its sustainability beyond the short term.

According to a recent analysis, the yen's move is largely a JPY story rather than evidence of a broader shift in sentiment towards the dollar. Fast money appears focused on a combination of a hawkish Bank of Japan and GPIF increasing domestic ownership.

The next meaningful support for USD/JPY comes at 152.0, where the yen rally stalled in January and February. A break below that could quickly open the way towards 150.0.