USDJPYUS Dollar/Japanese YenFX:USDJPYShavyfxhubUSDJPY Exchange Rate USDJPY: 144.495(July 5, 2025) The pair has been trading in the 144.0–145.0 range in early July, reflecting recent yen strength and a broadly weaker US dollar and japan economic outlook. 10-Year Government Bond Yields Country10-Year YieldDate Japan1.45% US4.31-4.38% Yield Spread (US10Y - JP10Y): 2.86 percentage points (US yield higher) Policy Interest Rates CountryPolicy Rate Japan0.50% US 4.25–4.50% Key Insights USDJPY: The yen has strengthened in 2025, with USDJPY falling from above 160 earlier in the year to the mid-144s in July. This reflects narrowing yield differentials and shifting global risk sentiment. Bond Yields: The US 10-year yield remains elevated at 4.31-4.38%, while Japan’s 10-year yield is at 1.45-1.43%, since 2019 jp10y is on the rise ,reflecting japan strong economic outlook Yield Differential: The US-Japan 10-year bond yield spread is 2.86%, favoring the US dollar. However, this spread has narrowed from earlier highs, contributing to recent yen strength. Interest Rate Policy: The Federal Reserve maintains a 4.25–4.50% target range, with markets expecting possible cuts later in 2025. The Bank of Japan holds its policy rate at 0.50%, the highest since 2008, but remains cautious about further hikes due to growth and inflation uncertainties. Summary Table Metric US Japan Differential Policy Rate4.25–4.50% 0.50% 3.75–4.00% 10-Year Bond Yield4.31% 1.45% 2.86% Market Implications USDJPY Direction: The narrowing yield spread and expectations of Fed rate cuts have pressured USDJPY lower, supporting the yen. Bond Differential: The still-wide, but narrowing, US-Japan yield gap remains a key driver for capital flows and currency moves. Interest Rate Outlook: Any shift in Fed or BOJ policy will directly impact both the yield spread and USDJPY direction in the coming months. #usdjpy