JP Morgan Sees Yen Gains Accelerating Below 155

JPMorgan Chase & Co.'s strategists are warning of a potential yen appreciation if dollar-yen breaks below 155, citing a sizable short position that could trigger further selling.

The bank estimates ¥16 trillion ($102.6 billion) to ¥17 trillion of bearish yen positions remain outstanding, and a complete unwind could theoretically push dollar-yen into a 142-146 range.

This warning comes after the currency's sharpest rally since Japan and the US jointly intervened in late July, with dollar-yen climbing to 160.39 earlier this week before reversing sharply to as low as 155.30.