>>211871587As you can see in your image, Japan is on the reverse Plaza Accord.
Plaza Accord (1985) was intended to depreciate USD, by forcing the appreciation of JPY. In contrast, Japan is now allowed to depreciate its currency. This benefits Japanโs exporters, stock market valuations, and inflation targets (finally hitting 2% CPI target).
US now tolerates Japanโs Weak Yen, because China is the new trade target. Japan is seen as a key ally within their economic bloc. This makes Japan a more attractive supply chain hub, reducing China exposure.