USD/JPY - Overview as of 28.05.2025

Financial and commodity markets analytics


At the May 28 auction, Japan's Ministry of Finance saw a decline in interest in 40-year government bonds. The coverage ratio fell to its lowest level in almost a year. This, combined with rising yields, reflects concerns about the scale of government debt - more than 240% of GDP. The ministry is considering a reallocation towards short-term debt to reduce vulnerability. While domestic demand has been stable so far, the rise in yields suggests growing market tensions.Having found support in the previously described 142.50-143-50 area, the US dollar strengthened against the yen. Now, if the decline resumes, the market may target the 140.00-141.50 area.