{quote} why move up? Japan is strong country
Japan is a strong, technologically advanced economy.
However, the strength of a country's economy does not automatically equal a strong currency.
In Japan's case, the government and central bank (the Bank of Japan) have actively pursued policies for years to keep the Yen weak on purpose.
So, a "strong country" can absolutely have a weak currency if that is the explicit or implicit goal of its monetary policy. Japan is the textbook case of this.
But ............
The PM Fumio Kishida and, Governor of the BoJ, Kazuo Ueda, marks a potential historic turning point.
Japan is no longer an active promoter of a weak Yen; it is now a cautious manager of it.
They have end the NIRP, Scaling Back of YCC, Reduction of ETF Purchases.
For a trader, this means the JPY is shifting from a predictable "funding currency" to a volatile "policy normalization play.
We may see more volatile play for yen pair, where traders called it The easy money is gone (the carry trade era); the smart, tactical money is just getting started.
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