A significant correlation exists between the yield and net domestic fund demand differential and the USD/JPY exchange rate. When the yield differential or the gap in net domestic fund demand between Japan and the US widens, it exerts increased downward pressure on the JPY's value. Nonetheless, a notable alteration in this relationship has been observed since the onset of Abenomics, marked by a structural transformation in the JPY's response. If the government shifts away from the Abenomics policy framework, the inherent downward pressure on the JPY's value is likely to dissipate, potentially leading to a rapid ... (full story)