Yen Exodus: Invesco’s FXY Sees Notable Outflows as Dollar Momentum Builds
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The Invesco CurrencyShares Japanese Yen Trust’s FXY recorded fresh outflows of $5.87 million on January 8, 2026, underscoring renewed investor skepticism toward the Japanese currency. The redemption represents roughly 1.26% of the ETF’s latest assets under management, which stand at about $465.6 million, marking a meaningful but not yet destabilizing shift in positioning.
The related asset, FX:USD-JPY, is currently trading at 158.745, having climbed about 5.36% over the past three months as the dollar continues to press higher against a persistently weak yen. Short-term sentiment remains constructive for the pair, with a 1-day technical signal of Buy, suggesting traders are still betting on further yen depreciation or, at minimum, continued dollar strength.
The flow data and price action together highlight a broader macro backdrop in which interest rate differentials and divergent monetary policies continue to favor the dollar over the yen. Investors appear to be trimming exposure to yen-linked products like FXY as they lean into the prevailing carry and momentum trade in USD/JPY, while keeping a close eye on any potential shift in guidance from the Bank of Japan that could challenge this narrative.
For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.