Short answer
The yen is weak because Japanese interest rates are near zero while US rates are much higher — money flows out of yen into dollars.
Why is the Japanese yen weak?
What happened
USD/JPY reached multi-decade highs.
Why it happened
The huge rate gap makes borrowing in yen and investing in dollars very profitable (the 'carry trade'). This pushes the yen down.
Why investors care
A weak yen boosts Japanese exporters and the Nikkei, but hurts Japanese consumers via imported inflation.
How it affects ordinary people
Travel to Japan is cheap. Japanese consumers pay more for imports.
FAQ
Will Japan defend the yen?
The Ministry of Finance has intervened before by buying yen — the effect is usually temporary.
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Educational content — not financial advice.