Yen Exodus: Invesco’s FXY Sees Sharp Outflows as Dollar Strength Keeps Pressure On
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The Invesco Currencyshares Japanese Yen Trust, FXY, recorded sizable outflows of $5.82 million on January 21, 2026, as investors continued to pare back exposure to the Japanese currency. With assets under management now standing at $455.54 million, the latest redemption represents roughly 1.28% of the fund’s AUM – a meaningful single-day pullback for a currency-focused ETF.
The move underscores building skepticism that the yen will mount a near-term rebound against the U.S. dollar, despite months of speculation about a policy pivot from the Bank of Japan. For institutional allocators, trimming FXY appears to be a tactical way to lean into the prevailing macro narrative of U.S. rate resilience and Japan’s still-ultra-loose stance.
The related asset, FX:USD-JPY, is currently trading at 153.685, up about 2.27% over the past three months, reflecting continued yen weakness versus the greenback. From a short-term perspective, however, the pair is flashing caution: the 1-day technical signal stands at Sell, suggesting that traders see scope for at least a modest pullback or consolidation after the recent grind higher.
For now, the divergence between FXY outflows and a near-term sell signal on USD/JPY highlights a market split between tactical traders, who may be eyeing a short-term reversal, and longer-horizon investors, who continue to bet that rate differentials will keep the yen on the defensive. For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.