Yu stresses that a durable rebuilding of JPY holdings requires credible domestic follow-through from the Bank of Japan (BoJ), fiscal consolidation and structural reform to raise real rates and attract portfolio inflows. Intervention buys time, not conviction"Coordinated intervention has bought time but hasn’t materially increased foreign JPY holdings. Japanese equities remain largely passive and under-supported, while Japanese government bonds (JGBs) are attracting the clearest marginal demand." Measured on a JPY aggregate and USD/JPY basis, current holdings remain net positive for the JPY but at far lower levels compared to H1 2026." "On Tuesday, Treasury Secretary Scott Bessent admitted as much that intervention can give “market signals” but ultimately Japan was “going to need policy follow-up.”