USD/JPY: The Yen Is Still the Cheapest Funding Fuel in the G10

USD/JPY: The Yen Is Still the Cheapest Funding Fuel in the G10. The BoJ delivered a 25bp hike with a majority vote and one dissent, keeping QE tapering pace unchanged, underscoring a cautious tightening path. Real rates remain low by G10 standards, and intervention risk persists, though the structure keeps yen funding attractive for EM carry as long as global risk appetite holds. If USD/JPY were in the low- to mid-150s, carry dynamics would look more compelling, but timing remains crucial given potential MoF action that could spark sharp moves. The cross remains sensitive to macro shifts and policy signals.