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Newsig · Dollar Watch

BOJ Raises Rates to a 31-Year High: Why Is the Yen Still Under Pressure?

Market context: USD/JPY: BOJ raised interest rates for the first time in 31 years, which is important for currency market movements. BOJ raising rates typically supports the yen, but the yen continues to fall, with the USD/JPY up. EWJ: Rising rates in Japan affect capital inflows, which has implications for Japanese stocks. Japanese market capital flows are impacted by BOJ policies and yen exchange rates.

Why it matters

USD/JPY (US Dollar / Japanese Yen) · Why linked: BOJ raised interest rates for the first time in 31 years, which is important for currency market movements. Market context: BOJ raising rates typically supports the yen, but the yen continues to fall, with the USD/JPY up.

EWJ (Japan ETF) · Why linked: Rising rates in Japan affect capital inflows, which has implications for Japanese stocks. Market context: Japanese market capital flows are impacted by BOJ policies and yen exchange rates.

How EWJ usually react

This story is too recent for its own reaction record — we score each asset against the actual price move 24h after publication. These are the long-run figures across every event we have tracked for them.

AssetEventsAvg max moveClosed lower
EWJ5+0.81%40%

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