Bank of America has revised its forecast for the Japanese yen against the US dollar, raising its third-quarter estimate to 153 from 154 and lifting its year-end target to 149 from 152.

“We remain bullish on the yen,” analysts including Shusuke Yamada, Izumi Devalier, and Tomonobu Yamashita wrote on Wednesday. “Although the amount of yen purchased by the US may be limited, the signaling effect of such rare, coordinated intervention is significant.”

They also noted that successfully defending the yen could require follow-up macroeconomic policy actions, specifically accelerating the pace of interest rate hikes. “If the Bank of Japan acts in September rather than waiting until October, it would have an opportunity to demonstrate its commitment to addressing upside inflation risks and dispel perceptions of its delayed response.”