JPY Intraday Comment

Research evidence excerpt

JPY Intraday Comment

Global Markets Research

8 July 2026JPY Intraday Comment

Foreign Exchange - Global

Research AnalystsRevisions to the monetary policy wording in the

Global FX StrategyBasic Policy could help support the yen

Yujiro Goto - NSC

The correlation between USD/JPY and Japanese equities does not yujiro.goto@nomura.com

appear to have strengthened. +81 3 6703 1120

Yusuke Miyairi, CFA - NIplc

• The Takaichi administration may be becoming more sensitive to market yusuke.miyairi@nomura.com

developments, following a series of reports (e.g., Asahi, Bloomberg) that the +44 (0) 20 7102 4145

government is considering amending its wording on monetary policy in the Basic

Tomoki Hideshima - NSC Policy due in July. tomoki.hideshima@nomura.com

• Possible revisions to the monetary policy wording in the guidelines could support +81 3 6703 1427

JGBs and the yen by easing concerns over fiscal expansion and political pressure on Yuki Kodera - NSC

the BOJ, while BOJ Asada’s Reuters interview emphasized his dovish stance. yuki.kodera@nomura.com

+81 3 6703 1281

• The market narrative of foreign investors’ FX hedging flows on Japanese equities

adding JPY selling pressure wasn’t confirmed by our analysis, as the link between

Japanese equities and USD/JPY has not strengthened meaningfully.

Fig. 1: Rolling correlations of USD/JPY with TOPIX and the Fig. 2: Inflows into currency-hedged Japan equity funds

Nikkei 225

Note: Aggregated net inflows into the WisdomTree Japan Hedged Equity Fund. The Note: 90-day trailing rolling correlations of TOPIX and Nikkei 225 intraday open-to-close 2026 figure is the average through 25 June. returns with same-day USD/JPY returns from 9:00 to 15:00 Tokyo time, excluding

Japanese holidays. Source: Nomura, Bloomberg

Source: Nomura, Bloomberg