• Yen's changing fortunes might finally be spooking the bears

• Takaichi's reflationist aide projects Bank of Japan rate hike in September

• USD/JPY has slumped from 156.30 to 154.05, on Monday, on the EBS

• Spot's third-largest daily drop of 2026, last Thursday, continues to weigh

• Fourteen-day momentum reading is negative, reinforcing the overall bearish market structure

• USD/JPY and EUR/JPY tend to move in tandem, log correlations are high above +0.5

Daily Chart


Daily Chart


Correlation Chart

(Martin Miller is a Reuters market analyst. The views expressed are his own)