Invesco CurrencyShares Japanese Yen Trust
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
FXY$57.79-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-122599
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0000950170-25-067197
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 26 previous paragraphs and 24 current paragraphs.
19 unchanged; 3 reworded; 2 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
The Japanese yen (JPY/USD) ended the first quarter of 2025 higher, largely thanks to US dollar (USD) weakness. Macroeconomic concerns ignited by shifting global tariff policies and mounting stagflation fears dented consumer, investor, as well as business sentiment in the US, leading to a sharp downturn in domestic financial markets. Moreover, the JPY is also gaining support from safe haven demand amid dissipating risk appetite, and expectations for rate hikes by the Bank of Japan, in contrast to rate cuts by the Federal Reserve.
Current report
The Japanese Yen (JPY/USD) continued lower in the first quarter of 2024, sliding to the weakest level against the USD in nearly 34 years. While the pair recovered slightly in early March after the Bank of Japan (“BoJ”) raised rates for the first time since 2007, those gains were short-lived. Contrary to what the market had hoped, the central bank remained committed to its ultra-loose monetary policy. On the other hand, the USD stayed strong through the quarter, supported by the Fed’s higher-for-longer rhetoric, stickier-than-expected US inflation, US economic resilience, and heightened geopolitical tensions.
Removed paragraphs (4)
Previous report
The Japanese yen (JPY/USD) rallied significantly in the third quarter of 2024 supported by the surprise hike in Japanese rates in July, and the Federal Reserve’s (Fed) first rate cut in September. The unexpected hike triggered a sharp unwind of US dollar, Japanese yen carry trades (i.e., borrowing in the Japanese yen and investing it in a higher yielding asset like US treasuries), which further supported the pair. The Bank of Japan (BoJ) also signaled the potential for more hikes to come which marked a pivotal shift from the central bank’s previous, unwavering commitment to its ultra-loose monetary policy. The US dollar was further weighed down by the US equity market downturn, reignited hard landing concerns, and growing uncertainty around the US election.
Previous report
The Japanese yen (JPY/USD) continued to fall in the third quarter of 2023 on largely the same narrative. In addition to renewed dollar strength, the Bank of Japan (BoJ) stuck to its ultra-easy monetary policy. This has helped maintain the wide interest rate differential between JPY and other global currencies, making it even less attractive to hold. While the JPY did see a bump higher in early September after BoJ’s governor stated that the central bank would now be focusing on “a quiet exit” from its ultra-loose monetary policy, those gains were quickly wiped out.
Previous report
While the Japanese yen (JPY/USD) was heavily pressured in the first half of 2024, prices made a significant comeback in the third quarter, erasing earlier losses. The pair was heavily pressured in the first half of the year, with prices sliding to the weakest level against the US dollar in over three decades as the BoJ stayed committed to its ultra-loose monetary policy, while the Fed kept on with its higher-for-longer rhetoric amid sticky US inflation. However, the pair managed to make a strong comeback in the third quarter of 2024, erasing most of its previous losses, with the surprise Japanese rate hike in July boosting the yen, while the kickoff of the Fed’s easing cycle and other US macro concerns pressured the dollar.
Previous report
The Japanese yen (JPY/USD) ended the first three quarters of 2023 down 12% – most of the losses were from the second quarter of 2023 but the pair posted losses in all three quarters. While in mid-Jan the yen did surge on speculation that the Bank of Japan (BoJ) was going to change its ultra-loose monetary and yield curve control policies after the BoJ allowed the key long-term government bond yield to move in a wider range, the central bank quickly defied this with its announcement to remain status quo. As a result of this and a strengthening dollar through Feb and early March, the currency pair plunged. While the yen did recover quite significantly for the remainder of March as the dollar weakened on US banking sector turmoil, prices returned to tumbling in the second quarter of 2023. Like the first quarter of 2023, the BoJ remained ultracommitted to its dovish monetary policy while other central banks hiked, causing global interest rate differentials to the JPY to widen even further – lower interest rates deter investors. The third quarter of 2023 was a continuation of the same “ultra-low” narrative, though renewed US dollar strength added additional pressure.
Reworded paragraphs (3)
Previous wording
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “outlook” and “estimate” and other similar words. Forward-looking statements are based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Various factors may cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include fluctuations in the price of the Japanese Yen, as the value of the Shares relates directly to the value of the Japanese Yen held by the Trust and price fluctuations could materially adversely affect an investment in the Shares. Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent annual report on Form 10-K for a description of other risks and uncertainties that may affect an investment in the Shares.
Current wording
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “outlook” and “estimate” and other similar words. Forward-looking statements are based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Various factors may cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include fluctuations in the price of the Japanese Yen, as the value of the Shares relates directly to the value of the Japanese Yen held by the Trust and price fluctuations could materially adversely affect an investment in the Shares. Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent Annual Report on Form 10-K, together with the modified risk factor included in Item 1A of this report, for a description of other risks and uncertainties that may affect an investment in the Shares.
Previous wording
The financial statements and accompanying notes are prepared in accordance with U.S. GAAP. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2023.
Current wording
The financial statements and accompanying notes are prepared in accordance with U.S. GAAP. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
During the three and nine months ended September 30, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023, which are considered to be unusual or infrequent events. Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil, on the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
Current wording
During the three months ended March 31, 2025 and 2024, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations and mounting US recession concerns for 2025, and expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, which are considered to be unusual or infrequent events. Although the full and direct impact of global tariffs, US recession concerns, Fed easing expectations and rising geopolitical tensions, on the Trust’s net comprehensive income (loss) during the three months ended March 31, 2025 and 2024, cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.