Woofun AI data shows that the USD/JPY exchange rate breached the 162 level, reaching a peak not observed since December 1986. This movement reflects the widening interest rate gap between the United States and Japan, with the Federal Reserve maintaining higher rates while the Bank of Japan keeps rates ultra-low. The depreciation enhances the competitiveness of Japanese exports and increases the value of overseas profits for multinational firms. Conversely, it elevates the cost of imported energy, food, and raw materials, intensifying inflationary pressures on households and businesses. Authorities have expressed concern over the decline's pace, though direct market intervention remains rare. Investors are monitoring potential policy signals from Japanese officials and upcoming U.S. economic data that may influence Federal Reserve decisions.