The first reason is that the US dollar and RMB are stronger than other currencies. Recently, influenced by good economic data and interest rate hike expectations, the US dollar has greatly strengthened and stepped out of the trend rising market. Most non-American currencies fell sharply against the US dollar, but different currencies fell differently against the US dollar. Accordingly, the RMB exchange rate has not been greatly affected during the rise of the US dollar. On the contrary, the exchange rate of RMB against the US dollar has risen recently, so that the RMB has risen sharply against other non-US currencies.

Secondly, Japan's economic fundamentals have not grown much, which has dragged down the yen exchange rate. Abenomics was implemented two years ago, and the exchange rate experienced a sharp decline. However, almost two years later, Japan's economy has not improved, and the deflation situation has not improved. Therefore, the Japanese government continues to adopt a large-scale monetary easing policy to stimulate the economy, which is in sharp contrast with the US economic recovery, which will bring monetary policy back to normal by raising interest rates. At the same time, in order to solve the government debt problem, Japan will raise the consumption tax again, which will have a more adverse impact on the Japanese economy.

It is precisely because of the above factors that the yen resumed a wave of decline in the early stage, and the yen exchange rate hit new lows. The downward trend of the yen will not change in the future, and there will still be some room for the yen to fall in the future. In the downward trend, it is difficult to judge where the bottom of the yen falls.