OCBC FX strategists believe yen intervention alone won't reverse the currency's weakness, warning that only a genuine hawkish shift from the Bank of Japan could transform the yen into an investment currency rather than a funding vehicle. The April intervention efforts remain incomplete, with markets still pricing in persistent dollar strength against the Japanese currency.

Current trading shows the dollar at Y161.47, up 0.2% according to LSEG data, maintaining levels above the psychologically significant 160 yen threshold. This follows months of yen pressure as global investors continue using it for carry trades amid Japan's ultra-low interest rate environment.

Japan's Finance Minister Satsuki Katayama signaled Monday that authorities stand ready to act in the foreign exchange market as needed, though stopped short of announcing specific measures. Her comments reflect ongoing government concern about excessive yen weakness amid rising import costs and inflation pressures.

Without substantive monetary tightening from the BOJ, the yen will likely remain trapped in its role as the primary funding currency for global investors seeking higher-yielding assets elsewhere. The intervention risk stays elevated, but technical support alone cannot overcome fundamental monetary policy divergence.