The Yen Supertanker Is Turning: Why USD/JPY 150 Could Break Global Markets

The yen supertanker is turning

For two years, USD/JPY largely ignored collapsing rate differentials. That regime may finally be breaking.

Faster BoJ tightening, political tolerance for a stronger yen and the reversal of Japanese capital outflows are now aligning. Intervention may have started the move, but TS Lombard argues that repatriation is what could sustain it.