In case you missed it, from earlier: BofA cuts USD/JPY year-end forecast to 149 after interventionThis adds to their previous quick take that the joint action by the US and Japan has removed the "ultimate constraint" on intervention.Given the situation, they have revised down their USD/JPY forecast for Q3 2026 to 153 (previously 154) and year-end target to 149 (previously 152). BofA notes that:"The Japanese and US authorities conducted a coordinated FX intervention on 31 July. Both governments have acknowledged that the intervention was carried out. While the amount of yen buying by the US may be limited, the signaling effect of this rare, coordinated intervention is significant."The firm goes on to add that the latest intervention effort has now raised the odds of Japan being able to better defend the yen currency and could also allude to quicker BOJ rate hikes down the road. They outline some key points on what impact the joint intervention may have on the overall market landscape:What is the short-term objective of the intervention?To drive USD/JPY below 155.What is the long-term goal then?To restore credibility and stabilise the Japanese yen currency.What is the significance of the coordinated action?It effectively removes the limit/major constraint on intervention.What does this imply for BOJ policy setting?It potentially could signal faster rate hikes; September in watch.What is the implication for the JPY?Positive, as outlined by the upward revision to the forecasts.What is the implication for the JGB market?Prefer to stay long via 30-year asset swaps than trade the curve.How will further MOF intervention be funded?Likely involving the sale of US Treasuries.What is the implication for the USD and EUR rates market?Limited. This article was written by Justin Low at investinglive.com.