The Japanese yen has been incredible these past two years. From the beginning of 2025 to now, there has been an astonishing change. From 160 to 140, it has pumped over 12% in just three months. Impressive!

The policies of the US and Japan are different now. The demand for hedging has also increased. There are also some movements on Trump's side. All of these are affecting the exchange rate.

The Bank of Japan has started raising interest rates. The era of negative interest rates has ended. In January, it suddenly increased to 0.5%, which is a significant move that hasn't been seen in a long time. Government bond yields have also gone up.

How the yen will move next, who knows? It depends on how the Bank of Japan operates. The US-Japan trade negotiations are also a matter. Where Japan's own money flows is also crucial.

Inflation seems quite high. However, the Bank of Japan doesn't seem to be in a hurry. In the short term, the yen may not pump much. However, the global situation is unstable, and the dollar is also quite volatile, which is good for the yen.

Nomura said the yen could still pump by about 6%. Sounds quite optimistic.

In the long run, the Japanese yen seems to have the opportunity to continue to appreciate. Those who want to buy yen might consider it. However, it is still important to assess your own situation and not act impulsively.