“The weak yen has not changed at all. The point is that the Bank of Japan did not vigorously raise interest rates, and real interest rates are still deeply negative,” said Tohru Sasaki, chief strategist at Fukuoka Financial Group. He expects the USD/JPY exchange rate to rise to 165 by the end of 2026. “I think the Fed's interest rate cut is almost over. If the market starts pricing this, it will be another factor driving up the dollar against the yen.”

“The weak yen has not changed at all. The point is that the Bank of Japan did not vigorously raise interest rates, and real interest rates are still deeply negative,” said Tohru Sasaki, chief strategist at Fukuoka Financial Group. He expects the USD/JPY exchange rate to rise to 165 by the end of 2026. “I think the Fed's interest rate cut is almost over. If the market starts pricing this, it will be another factor driving up the dollar against the yen.”