Put simply, a 10 percent appreciation of the yen against the dollar would result in an exchange rate profit of approximately 1.5 trillion yen for Japan's economy as a whole. Second, Japanese firms have been expanding their foreign direct investment mainly through overseas mergers and acquisitions (M&As), with the net figure for 2019 reaching a record high of approximately 27 trillion yen.
Given that a considerable share of these transactions is denominated in U.S. dollars, they would induce a significant amount of dollar purchases against the yen, barring any currency hedging by the Japanese firms.