Some view USD/JPY as remaining under upward pressure, with expert warnings raising the risk that it will reach the ¥170 range. An analysis of the turning point in the foreign-exchange market was presented.
In 2026, the yen weakened to around ¥164 per dollar, and historic milestones continued, including coordinated intervention by Japan and the U.S. in the same direction for the first time in 28 years. Toru Sasaki of Fukuoka Financial Group analyzed the potential turning point for further yen depreciation.
The analysis addresses whether the gap between services in Japan and the U.S. will be corrected, from the perspectives of purchasing power parity and the impact of policy structures in both countries, and presents the view that yen depreciation will continue. Sasaki explains that expanding outward foreign direct investment by Japanese companies and low wage levels are supporting yen depreciation.
The expansion of outward foreign direct investment and the tendency for Japanese funds to flow overseas are cited as reasons why the gap between services in Japan and the U.S. has not been closed. The argument was also presented that ¥1,000 trillion in assets held dormant in Japan could shift into foreign currencies.