Citi said that if the yen continues to weaken and the dollar rises to around 160 against the yen, Japan's Ministry of Finance may intervene in the foreign exchange market by buying yen and may try to push the exchange rate back to around 150. Citi pointed out that after the Bank of Japan meeting, the Japanese authorities had already made an exchange rate inquiry. At that time, the yen exchange rate was stronger than during the previous actual intervention, indicating that the government's tolerance for the depreciation of the yen may have declined. At the same time, the agency believes that the cabinet reshuffle of the Takaichi government is basically in line with expectations. Next, the market will focus on whether the government announces that Japan has escaped deflation; Citi does not expect to make this statement immediately in the short term. The key is whether the Cabinet Office's monthly economic report on deflation has changed. If the government gradually downplays its current re-inflation stance, the previous rise in interest rates in Japan may instead provide support for the yen.

Citi said that if the yen continues to weaken and the dollar rises to around 160 against the yen, Japan's Ministry of Finance may intervene in the foreign exchange market by buying yen and may try to push the exchange rate back to around 150. Citi pointed out that after the Bank of Japan meeting, the Japanese authorities had already made an exchange rate inquiry. At that time, the yen exchange rate was stronger than during the previous actual intervention, indicating that the government's tolerance for the depreciation of the yen may have declined. At the same time, the agency believes that the cabinet reshuffle of the Takaichi government is basically in line with expectations. Next, the market will focus on whether the government announces that Japan has escaped deflation; Citi does not expect to make this statement immediately in the short term. The key is whether the Cabinet Office's monthly economic report on deflation has changed. If the government gradually downplays its current re-inflation stance, the previous rise in interest rates in Japan may instead provide support for the yen.