UBS Asset Management's Kevin Zhao says further intervention by Japan to support the yen would present a good selling opportunity. The head of global sovereign currency fixed income sold the yen when Japanese authorities intervened earlier this year and is waiting for the next trigger. Zhao doubts Friday's central bank rate increase signals a hawkish turn by the Bank of Japan.

Zhao's stance reflects skepticism about the sustainability of yen strength following the BOJ's decision to raise rates. He believes any official intervention to prop up the currency would be a signal to sell, based on his experience from earlier interventions in 2026.

The comments come as markets assess the implications of Japan's monetary policy shift. Zhao's strategy highlights the cautious approach some institutional investors are taking toward the yen despite the rate hike, viewing intervention as a potential ceiling for the currency rather than a floor.