Institution: Coordinated foreign exchange intervention supports a bullish outlook on the yen.

Recent coordinated foreign exchange interventions by Japan and the United States have supported Bank of America Global Research's bullish view on the yen. The strategists stated in a report, "The signaling effect of this rare coordinated intervention is significant." They added, "The primary long-term goal of the Japanese and U.S. governments should be to restore credibility and stabilize the yen." The team further noted, "Coordination means that Japan and the U.S. have reached an agreement on common goals and plans to achieve those goals." Due to factors such as the increasing likelihood of the Bank of Japan accelerating interest rate hikes, Bank of America has lowered its forecast for the dollar-yen exchange rate from 154 yen to 153 yen for the third quarter, and from 152 yen to 149 yen for the end of the year.