Asymmetric Advisors suggests that the effectiveness of official interventions to support the yen diminishes with each successive market operation by authorities. "The moment the forex market realizes that Japan is acting alone in its interventions, it may sense an opportunity to short the yen and once again test the 160 resistance level emphasized by Japan's Ministry of Finance," stated strategist Amir Anvarzadeh, who has 37 years of experience in the Japanese market. The firm also noted: "Each time they intervene from here, the impact is likely to become progressively smaller, as sellers begin to target the currency." Anvarzadeh referenced the scenario of the British pound's sharp decline in 1992, when hedge funds shorted the currency, adding, "This really feels somewhat similar to what we are seeing in Japan now." In 1992, the Bank of England raised interest rates, but "this time the Bank of Japan is holding steady." Against the backdrop where Middle East conflicts provide "yet another excuse" to keep Japan's benchmark interest rate at 0.75%, "we already have all the elements in place to trigger a Japanese currency crisis."
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