One was a steep decline in U.S. long-term interest rates. U.S. interest rates are more likely to remain elevated, while factors weighing on the yen in Japan are unlikely to disappear quickly. Japan, meanwhile, continues to face domestic forces that can weaken the yen even as interest rates rise. A surprise BOJ rate increase is also becoming harder to deliver because investors are already pricing in substantial additional tightening. Markets are also pricing in the possibility that the policy rate could eventually reach around 1.5% to 1.75%.