Yen Soars to Two-Month High Amid BOJ Hike Bets

The yen has surged to its strongest level since February, reaching 154.06 per dollar in London after a sharp rebound that left the currency up 2.4% last week.

The move was attributed to positioning and flows, with a cluster of large stop-loss orders under 155 triggering a sell-off of dollars and accelerating the yen's gains.

Traders also pointed to expectations around forthcoming BOJ and Federal Reserve meetings, as well as talk of the Government Pension Investment Fund potentially shifting its asset mix, which added to the tailwinds.

Caution flags were raised by officials, with Motonari Sakai warning that sharp moves can occur when New York is closed, and Atsushi Mimura reiterating his fighting stance on the yen remains unchanged.