Japanese Yen: Policy doubts weigh on Yen – BNY

FXStreetAug 17, 2026 1:41 PM

View all comments（0）



BNY’s Geoff Yu highlights that weak Japanese Gross Domestic Product (GDP) data and rising JGB yields are undermining confidence in the Bank of Japan’s ability to sustain a stronger Yen. USD/JPY is trading above 159.00 after giving back intervention gains, while iFlow data show persistent JPY outflows, though selling has recently eased as positioning turns underheld again.

Yen slides as yields test credibility

"Japan’s Q2 preliminary GDP data has again cast doubt on the Bank of Japan’s (BoJ) ability to hike rates, even though markets see such a move as necessary for the Japanese authorities to have any chance of success in the JPY’s defense."

"The overnight weakness in the JGB market also hints at significant concerns over policy credibility."

"Based on our flow figures, the market remains skeptical of success and has used the opportunity to sell JPY, both on an aggregate basis and against the USD."

"Based on flows since July 30 – the first day of the intervention – JPY’s daily average sales magnitude is 0.86, which is above the 0.79 daily average for USD/JPY on a standalone basis."

"However, the past week has seen selling gradually ease, especially as our data highlight the JPY is now underheld again for the first time since end-2024, albeit current holdings levels are extremely noisy."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

Why Nike Stock Hit a 12-Year Low, Down 78% From Its 2021 Peak

TradingKey - Nike (NKE), which once swept global markets with its "Just Do It" slogan and Air Jordan series, is currently experiencing a prolonged slump rarely seen since going public. On August 17, Nike shares closed at $39.09, down about 4% for the day after touching an intraday low of $38.86, hitting a new low in nearly 12 years.

Micron Shares Return to $1,000: After Short-Term Policy Catalysts, Can AI Demand Sustain MU Stock's Continued Rally?

TradingKey - On August 17 ET, Micron Technology (MU) closed at $1,011.75, up 4.13%, reclaiming the $1,000 mark for the first time in over a month and bringing its cumulative rebound from its July low to 36%.

Today’s Market Recap: US-Iran Talks Fail, Memory Chips Outperform as SanDisk Jumps 9%, Micron Tops $1,000

TradingKey - The window for U.S.-Iran negotiations has closed, and the prospects for an agreement look bleak. The three major U.S. stock indices closed lower for the second consecutive day. At the close, the Dow Jones Industrial Average fell 0.51% to 53,459.78; the Nasdaq Composite Index dropped 0.

Japan, South Korea Stocks Diverge in Early Trade as Kospi Rises Over 2%, SK Hynix Jumps Over 6%, Nikkei 225 Drops 0.8%

TradingKey - On August 18, Japanese and South Korean stock markets diverged in morning trading. South Korea's KOSPI Index (KOSPI) opened higher and extended its gain to 2.2%, standing at 7,131.40 points, while Japan's Nikkei 225 Index (JPN225) came under pressure, falling 0.81% to 68,658.17 points.

US Stocks Close: Dow Drops 270 Points, SOX Bucks Trend to Gain 1.64%; Memory and Optical Communication Stocks Lead Gains; Micron Rises 4% to Retake $1,000 Mark

The US-Iran ceasefire agreement expired on Monday as negotiations reached a deadlock, while the 30-year US Treasury yield hit a new high since 2007, both of which weighed on US equities. All three major indexes fell, while AI hardware stocks bucked the trend to strengthen, with memory and optical communication stocks leading the gains. At the close, the Dow Jones Industrial Average dropped 0.51% to 53,459.78; the Nasdaq Composite Index fell 0.32% to 26,644.91; and the S&P 500 Index lost 0.52% to 7,745.06.

Featured Tools