Yen Surges as JPMorgan Warns of Potential Sell-Offs Below 155 Level

The Japanese yen has seen its largest gain in over a month after a strong rebound on Thursday, rising nearly 2% and hitting the largest one-day increase since Japan's joint intervention with the US in late July.

The USD/JPY exchange rate quickly retreated from its recent high of 160.39 earlier in the week, dropping to around 155.30 at its lowest point, just a step away from the post-intervention low of 155.23 in July.

JPMorgan strategists warn that if the USD/JPY falls further below 155, massive yen short positions may be forced to unwind rapidly, triggering chain-reaction selling and driving the yen higher than market expectations.