MAEXO
fxbearishAbout USDJPYPublished May 21, 2026, 8:00 AM

Japanese yen might stay weak until BOJ tightens policy

Japanese yen might stay weak until BOJ tightens policy
Key takeaways
  • Analysts note the yen could remain under pressure due to ultra-low interest rates, with potential recovery only if the Bank of Japan reduces bond purchases or raises rates.
  • USD/JPY hovered around 159.65.
AI insight — what it means

AI insight — what it means

The Japanese currency is expected to stay weak against the US dollar because Japan's central bank keeps interest rates very low. This situation means everyday investors holding dollar-based assets could see continued strength in the dollar versus the yen until policy changes.

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