JP Morgan discusses the lates yen's BoP flows.

"Since the LDP leadership election last October, the yen has weakened across the board against G10 currencies. However, over the same period, FX flows attributable to the balance of payments have shown a record net yen buying, partly due to ¥27 trillion ($170 billion) of yen-buying intervention.

Japan’s current account surplus in 2026 is on track to reach a new record, while outflows related to direct and portfolio investment abroad have declined further," JPM notes.

"Therefore, the yen’s depreciation since PM Takaichi took office is difficult to explain without assuming that substantial yen selling has taken place outside the balance-of-payments items (“off-balance” yen selling). USD/JPY is currently significantly above its fair value implied by the US–Japan interest rate differential," JPM adds.