JPY: A volatile start – NAB

The Japanese Yen (JPY) experienced significant volatility at the start of 2026, trading between 153 and 159 before finishing the month slightly stronger. National Bank of Canada (NAB) analysts Stéfane Marion and Kyle Dahms expect yen appreciation in the second half of 2026, driven by broader USD dynamics and potential interest rate increases by the Bank of Japan.

Yen shows resilience amid market stress

"While we remain cautious over the next six months, we still expect yen appreciation in the second half of 2026, driven by broader U.S. dollar dynamics and the possibility that a strengthening renminbi gives the Bank of Japan scope to raise interest rates."

"Taken together, the latest developments suggest that the recent Yen appreciation in January reflected stabilization efforts and market adjustment rather than renewed confidence in Japan’s fundamentals."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)