BBH's analysis suggests a bullish outlook for the JPY, regardless of potential intervention from the US. The report notes that USD/JPY is significantly overvalued relative to US-Japan rate differentials, and concerns over Japan's fiscal policy are considered overdone. The combination of loose fiscal policy and tighter monetary policy is seen as positive for the JPY. We remain bullish on JPY regardless of whether there is intervention or not." Third, Japan’s mix of loose fiscal policy and tighter monetary policy is JPY positive."