Bank of America Corp. now forecasts the Japanese yen will appreciate approximately 6% against the U.S. dollar by the close of 2026. This revised outlook stems from expectations of coordinated currency intervention.

Previously, the bank had anticipated a more modest gain for the yen. The shift in prediction highlights a growing conviction among some analysts that global economic conditions and potential policy actions could lead to a stronger yen.

While the exact timing and scale of intervention remain uncertain, Bank of America’s updated view suggests a potential turning point for the currency, which has faced significant downward pressure in recent periods.