Woofun AI reports that Tatsuo Yamazaki, a former financial officer at Japan’s Ministry of Finance, stated in a Monday interview that the yen could appreciate by up to 20% from current levels near 130 per dollar. Yamazaki characterized the situation as driven by shifting market expectations rather than fundamentals, suggesting the currency is approaching a climax. He argued that estimates of a 10% undervaluation are too conservative and expressed confidence in a move toward 130.

Furthermore, Yamazaki cautioned that recent calmness from Japanese authorities should not be mistaken for complacency. He noted that the Ministry of Finance has moved beyond warnings, indicating a clear willingness to take action against those holding short yen positions, thereby imposing intervention risks.