What changed in Invesco CurrencyShares Japanese Yen Trust's 10-K — 2024 vs 2025

This volatility could materially and adversely affect the performance of the Shares. The United States, under the Trump administration, has implemented significant tariff increases on imports from a large number of countries, affecting a broad array of goods, and has signaled that additional tariffs may be imposed.

These actions are part of a broader shift in U.S. trade policy that has at times been difficult to predict. The potential for further escalation, including the imposition of new or higher tariffs with limited notice, has contributed to increased uncertainty in global markets. In response, other countries, including China, have announced retaliatory measures.

While some tariff reductions have been implemented pursuant to temporary arrangements between the United States and various trading partners, such measures remain subject to reversal. These developments have contributed to increased volatility in foreign exchange markets, including fluctuations in the USD/Japanese Yen exchange rate. Sustained or increased volatility could materially and adversely affect the performance of the Shares.

Shareholders do not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940.

In the event that the Depository was to resign or be removed, the Trust will be terminated. Redemption orders are subject to rejection by the Trustee under certain circumstances.

In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber attacks include, but are not limited to gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption.

Compromises in the software supply chain or incidents at critical third-party vendors could magnify the operational impact of a cyber event and impair the Trust’s ability to process Shareholder or Basket transactions. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.

Important to these programs is Invesco’s investment in threat-intelligence, its active engagement in industry and government security-related forums, and its utilization of external experts to challenge its program maturity, assess its controls and routinely test its capabilities.

The Sponsor oversees cybersecurity risks for the Trust by applying Invesco's enterprise policies and control framework to the Trust's operations and service providers and by escalating any Trust_relevant findings through the Sponsor's management reporting and certification processes.

The Trust did not experience any material cybersecurity incidents during the year ended December 31, 2025, and cybersecurity risks did not materially affect the Trust's business strategy, results of operations, or financial condition in the period. In addition, security controls, no matter how well designed 8 or implemented, may only mitigate and not fully eliminate risks.

(c) Although the Trust does not redeem Shares directly from its shareholders, the Trust, from time to time, redeems Baskets from Authorized Participants.

The Japanese yen (JPY/USD) finished 2025 lower, with gains in the first half ultimately offset by losses in the second half of the year. Early in the year, the yen benefited from strong safe‑haven demand and rising expectations that the Bank of Japan would move toward rate hikes.

At the same time, the U.S. dollar faced pressure from concerns over Federal Reserve independence and dovish policy leanings, broader economic uncertainty, the growing appeal of the debasement trade, and tariff‑related risks.