UBS has stated that the USD/JPY exchange rate is expected to be below 148.00 in the short term, with levels above 152.00 considered stretched.

It is important to monitor both US and Japanese interest rates, especially before the Bank of Japan's upcoming meetings on October 30-31 and December 18-19. While no rate hike is expected in the immediate meeting, there is increasing speculation about a potential increase in December.

Japanese authorities have downplayed concerns about the current exchange rate levels and instead emphasized the need to focus on the rapid and volatile movements of the yen. Market participants are advised to remain vigilant as these fluctuations are influenced by speculative trading dynamics.