The Yen Is Not Recovering. It is being Repriced.

Tokyo, the BoJ, and the Return of Bond Vigilantes

The market narrative says the yen is “stabilizing.”

That interpretation is dangerously incomplete.

What is happening now is not a normal FX rebound. It is the beginning of a systemic repricing across Japan’s entire macro-financial structure:

• the yen,

• Japanese government bonds,

• BoJ credibility,

• fiscal sustainabi…