BofA argues that there is a balance to be struck and that might fit with a USD/JPY range of around 145 to 155 in the near-term. "According to the Tankan survey, large manufacturers assume average USD/JPY rate for FY25 to be 146.50.. USD/JPY's drop below 145 appears undesirable in the near-term. However, a volatile selloff in USD/JPY below 150 could lead to a sharp selloff in equities, which increases the bar for intervention with USD/JPY below 155." However, BofA says that it will be tough to sustain such a move with just intervention alone:"In the medium-term, the government may be comfortable with a lower USD/JPY rate but not lower than manufactures' "breakeven" USD/JPY rate, which was 127 as of late 2024/early 2025. As a reminder, Japan last intervened to prop up the yen currency back in July 2024.