Dollar/yen is in trouble. What caused it to plunge to the 152 range?!

In short, the current USD/JPY is not “just a decline.”

On September 8, 2026, the USD/JPY fell temporarilyto 152.89 yen.

The yen has risen to a multi-month high, and the recent moves have been quite strong.

So why has the USD/JPY fallen this far?

Reason 1: Expectations of BoJ rate hikes

The biggest factor isthe expectation that the Bank of Japan will raise interest rates further.

When interest rates rise, the currencies of those countries tend to be bought.

In other words,

BoJ rate hike expectations
→ the yen is bought
→ USD/JPY falls

this is the flow.

Reason 2: Loss cuts by yen sellers

Until now, the market had many investors who thought

“the yen is still weak”

and sold the yen.

However, with the sudden yen appreciation, those people all cut their losses at once.

Then,

yen buying → further yen appreciation → more losses

began to feed on itself.

Currently, this “reversal” may be accelerating the USD/JPY decline further.

Reason 3: Cautious about intervention

Because the Japanese government and the BoJ have been sternly warning against yen depreciation,

more and more investors think,

“It’s risky to sell the yen further.”

Whether intervention actually happens is not confirmed, butthe mere anticipation of intervention is a factor that supports yen buying.

From here, the important point is “150 yen”

Personally, the most important thing to watch iswhether it will break below 150 yen.

Having reached the 152 yen area, 150 yen is a clearly psychological level.

If it clearly breaks below 150 yen,

loss cutting
↓
yen buying
↓
further USD/JPY decline

a stronger possibility arises.

On the other hand, this week also includes the US CPI release.

If the figures are strong, the dollar could rebound, and USD/JPY could rally sharply.

Now is not the time to chase

When you see such a big move in the market, you tend to think,

“If I sell now, I might profit.”

But the most dangerous thing isjumping in after a large move.

After a sharp drop, there can be rebounds in several-yen increments.

Recently, I’ve returned to the idea of,

“Trade less frequently, and only engage in truly opportune moments—about 3–4 times a month.”

From how USD/JPY looks now, I feel that’s better.

Summary

The main reasons USD/JPY has fallen to the 152 range are,

• Expectations of BoJ rate hikes

• Losses in yen-selling positions

• Caution about currency interventions

These three.

And the next major point is150 yen.

Whether it breaks here or rebounds.

USD/JPY is at a very important juncture now.