📝 Recommend USD/JPY Spot Short, Target 122.0: Barclays

Peaking global inflation, increased MoF verbal intervention and the prospect of a BOJ policy change suggest risk is shifting to the downside for USD/JPY. BOJ policy adjustment should cause one-off JPY appreciation by ~5% via tightening US-Japan yield differentials and an unwind of the YCC-amplified portion of yen weakness. See the BoJ adjusting its YCC policy by shortening its 0% target from the 10y to the 5y tenor by the September meeting.Recommend short USD/JPY spot at 129.8 with a target at 122, stop-loss at 134 - Barclays Strategy