USDJPY has eased significantly. Of course, that is not thanks to the Japanese currency policy. The Yen was unable to gain much against the Dollar; USDJPY eased in line with the entire USD index. Thus, the MOF has been incredibly lucky, economists at Commerzbank report.

A case of incredible luck for the Japanese Ministry of Finance

“USDJPY eased because of USD weakness not because of JPY strength. This trend might well continue. So far, I had only expected to see USD weakness from Q1/2023. At present, it looks more as if it was going to take hold now. In that case, the MOF would have been incredibly lucky.”

“Anyone who does not share my USD view and expects a new period of USD strength on the other hand is likely to consider USDJPY to constitute the ideal target for USD longs.”